Bitcoin Falls Below $100,000 As Market Faces 'Exhaustion'
Bitcoin prices fell below $100,000 on November 4, marking their lowest levels since June. Analysts attribute the drop to market fatigue, caution over US interest rates, trade conflicts, and declining investor demand in the US. Spot demand and ETF flows also decreased, suggesting weaker fundamentals. Despite recent losses, the market shows signs of stabilization, with investors shifting focus to stablecoins and cautious accumulation. Additionally, repeated DeFi protocol breaches, including the $100 million Balancer hack, have shaken investor confidence and emphasized the need for stronger security in decentralized finance platforms.
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Bitcoin Price Drop: Recent Low and Market Exhaustion
Bitcoin prices dropped below the psychological level of $100,000 on Tuesday, November 4, hitting the lowest point since June. Market observers attributed this decline primarily to market fatigue. Tim Enneking, managing partner of Psalion, stated via email that, “The best explanation for BTC’s recent drop is simply exhaustion.” As per Coinbase data, Bitcoin fell to approximately $99,000, marking its most depressed value since around June 22.
Challenges Facing the Crypto Market
Enneking further elaborated on the challenges facing the cryptocurrency market, emphasizing several contributing factors, including:
- Caution due to rising interest rates in the US.
- Ongoing trade war uncertainties, particularly those initiated by the US against other global players.
- Concerns over traditional financial (tradfi) equity markets, questioning their ability to sustain or hold recent record highs.
- Treasury companies liquidating inventory to cover operational and debt costs.
These factors, according to Enneking, have created significant headwinds for the crypto markets.
Decline in Spot Demand and Weak Fundamentals
Julio Moreno, head of research for CryptoQuant, highlighted additional challenges for Bitcoin. He described the latest price drop as a follow-up correction after October’s major liquidation event, pointing to weak fundamentals.
Moreno observed a decline in spot demand for Bitcoin and noted weakened investor interest in the US, evidenced by:
- Negative flows in Bitcoin ETFs.
- A negative Coinbase price premium.
These indicators, coupled with reduced on-chain demand, signal persistent weakness in the market.
Market Stabilization and Repositioning of Capital
Despite recent price volatility, some analysts noted early signs of market stability. Brian Huang, cofounder of fintech firm Glider, commented that, “We’re now seeing the market stabilize after the chaos of last week.”
Huang highlighted the repositioning of capital, with stablecoins dominating the market as investors prioritize yield and safety. He added, “On-chain activity is already showing signs of quiet accumulation.”
According to Huang, if Bitcoin sustains momentum above key levels, this pullback could be seen as a recalibration rather than a collapse.
Impact of DeFi Protocol Hacks
DeFi protocol hacks remain another pressing concern for the market. Huang and other analysts pointed to significant incidents, such as the Balancer exploit, which resulted in the loss of over $100 million. Marcos Viriato, cofounder and CEO of Parfin, noted that the timing of this exploit was especially challenging, as Ethereum was already down by 7–8%, with thin liquidity amplifying the impact.
This incident, coupled with lingering fears from the recent Black Friday crash, further shook investor confidence. Viriato remarked, “This exploit just added to those concerns — it reminded everyone how fragile security can be in DeFi.”
Huang echoed similar sentiments, noting that repeated breaches have exposed weak points in DeFi lending markets, potentially accelerating the shift toward better-audited infrastructure. The coming weeks, he suggested, will reveal whether DeFi builders can restore trust or if capital flows will remain off-chain.