How Far Could Bitcoin (BTC) Fall Below $100,000? The Prospects Are Frightening!
Bitcoin (BTC) experienced a sudden drop of over 7%, falling below $100,000 for the first time since June and marking a more than 20% decrease from last month's peak. Experts predict the decline could continue, potentially dropping below $90,000 or even $80,000. Approximately $2 billion in crypto positions were liquidated in the last 24 hours. Analysts highlight long-term investor sales as a major factor for the decline, with market instability growing and notable reductions in holdings by large-scale investors ('whales'). Predictions suggest the decline might persist until next spring, with Bitcoin potentially reaching $85,000, though a catastrophic collapse is deemed unlikely.
Layer-1
Bitcoin Faces a Sudden Drop
Bitcoin (BTC) experienced a sudden drop of over 7% the previous day, falling below the $100,000 level for the first time since June. This decline represents a more than 20% drop from its peak recorded just a month ago. Predictions of further declines are growing within the market.
Analysts Predict Further Declines
According to Bloomberg, experts believe that unlike the sudden crash observed last October, this decline will likely not be a one-time event. They suggest that Bitcoin may fall below $90,000, or even as low as $80,000. In the meantime, options traders have been the first to expect further declines.
Liquidations Point to Market Instability
Data from CoinGlass reveals that approximately $2 billion worth of crypto positions have been liquidated in the last 24 hours. While this value is relatively modest compared to the $19 billion forced liquidation witnessed during last month’s October crash, Bitcoin futures open interest remains low. Additionally, options traders are signaling further bearish sentiment with their $80,000 put options.
Insights from Markus Thielen
10x Research founder Markus Thielen highlighted key differences between the recent decline and the October 11 crash. He stated that while forced sales dominated October's drop, the latest decline is being driven by long-term investors' sales. Thielen noted that the market has become increasingly unstable, with total assets held by those owning 100 to 1,000 Bitcoins decreasing sharply.
Market Trends and the Role of Whales
Thielen further emphasized that whales—investors holding large amounts of Bitcoin—are mostly selling and not purchasing. He warned that this sell-off trend could continue until next spring. Drawing parallels to the 2021-2022 bear market, Thielen referenced the sale of over 1 million Bitcoin during that period, cautioning that a similar sell-off might repeat.
Projections for Bitcoin Price
Although a catastrophic collapse is not anticipated, Thielen believes there is significant room for further declines. He predicts that Bitcoin could drop to $85,000, citing potential downside risks. This is not investment advice.