Bitcoin Price Plunges Below $100,000 As Extreme Fear Hits the Market
Bitcoin's price has dropped below $100,000 for the first time since June, following a broader sell-off in the cryptocurrency market due to macroeconomic pressures and investor risk aversion. The drop is fueled by factors such as the Federal Reserve's hawkish stance on interest rates, U.S. dollar strength, and October's sharp market liquidation. Spot Bitcoin ETFs have experienced significant withdrawals, and major cryptocurrencies like Ethereum and Solana have seen declines, alongside crypto-linked stocks. Analysts view $96,000 as the next technical support level, while a sustained rebound above $111,000 could signal recovery. Market sentiment remains cautious, with the fear and greed index shifting to 'extreme fear'. Despite buying efforts by some investors, traders remain wary of further losses ahead of the U.S. Consumer Price Index report. Bitcoin's long-term growth trend since 2020 remains notable, but short-term volatility dominates market outlooks.
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Bitcoin Dips Below $100,000 Amid Market Turmoil
The Bitcoin price bleeding does not seem to stop, as it tumbled below $100,000 for the first time since June. The price hit $99,913 but managed a slight rebound to $100,575 at the time of writing. This marks a fresh low for the leading cryptocurrency, as investors continue to flee risk assets amidst mounting macroeconomic headwinds.
Technical Breakdown and Investor Concerns
The cryptocurrency dropped more than 5% early Tuesday, briefly testing levels unseen in months. Traders grew increasingly worried as Bitcoin broke key technical support at around $104,000. This significant drop has fueled fears that further losses could be imminent. Spot Bitcoin ETFs have experienced significant outflows, with investors withdrawing over $1.8 billion from Bitcoin and Ether products in just a few days, while Ethereum and Solana also tumbled by over 5%. Crypto-linked stocks such as MicroStrategy, Coinbase, and Robinhood saw declines of at least 3%.
October's Sell-Off and Political Tensions
October 10 marked the beginning of Bitcoin's struggles, as the entire crypto market experienced a drastic sell-off. This was triggered by President Trump's announcement of sweeping 100% tariffs and export controls in retaliation to China's new restrictions. Despite ongoing trade talks, Bitcoin has failed to recover from its lows and has now fallen even further.
Impact of Federal Reserve Policies
The Federal Reserve's hawkish tone has played a pivotal role in adding pressure on Bitcoin. Fed Chair Jerome Powell recently walked back expectations of a December rate cut, stating that interest rates might remain higher for longer. While the Fed did cut its benchmark interest rate by 0.25 percentage points, Powell emphasized that inflation is "not so far" from the 2% target, and policymakers held "strongly differing views." The policy shift aimed to lower borrowing costs but strengthened the U.S. dollar, further pressuring non-yielding assets like Bitcoin.
Market Sentiment and Technical Challenges
Bitcoin struggles to maintain its 200-day moving average, a critical technical indicator. Analysts suggest the next support level to watch is around $96,000, while reclaiming $111,000 would indicate regaining upward momentum. However, market sentiment has turned grim. The Crypto Fear and Greed Index shifted to "extreme fear," and open interest in Bitcoin perpetual futures dropped roughly 30% from October highs, signaling a retreat by leveraged traders.
Dip Buyers Show Confidence Amid Volatility
Some long-term believers in Bitcoin are taking advantage of the dip. Strategy, co-founded by Bitcoin evangelist Michael Saylor, purchased 397 BTC between October 27 and November 2 at an average price of $114,771. This move represents a small but notable sign of confidence during turbulent times. Investors are now eagerly awaiting the U.S. Consumer Price Index report on November 13, which could influence Fed easing speculation and potentially boost Bitcoin’s performance.
Bitcoin’s Long-Term Resilience
Despite the current pullback, Bitcoin's long-term growth trajectory remains intact. From $5,000 in March 2020 to over $126,000 in October 2025, Bitcoin has demonstrated extraordinary volatility and resilience. However, in the near term, traders remain cautious, assessing potential downside risks as the market continues to process October’s historic losses.