The decline in bitcoin’s price shows no signs of abating. Bitcoin price has just dropped below $100,000 for the first time since June, signaling a new low in a challenging period for the world’s leading cryptocurrency. Bitcoin’s price reached a peak of $99,913 before bouncing back to $100,575 — as of the latest update. The decline in bitcoin prices is occurring as investors move away from risk assets amid increasing macroeconomic challenges. The cryptocurrency experienced a decline of over 5% early Tuesday, momentarily reaching levels that haven’t been observed in months. Traders observed with anxiety as the coin dipped beneath crucial technical support at approximately $104,000. The developments yesterday sparked worries that additional losses might be on the horizon. Spot Bitcoin ETFs are experiencing a significant surge in withdrawals. In recent trading sessions, investors have withdrawn over $1.8 billion from Bitcoin and Ether products. Ethereum and Solana experienced significant declines, each dropping over 5%, while crypto-related stocks such as MicroStrategy, Coinbase, and Robinhood saw a decrease of at least 3%. “The crypto market today is facing multiple near-term headwinds,” stated Derek Lim. “This is impacting a market that is already vulnerable due to October’s significant liquidation event and a series of hacks.”
The recent resistance in Bitcoin’s price can be traced back to October 10, when a significant sell-off occurred in Bitcoin and the wider crypto market. This was triggered by President Trump’s announcement of sweeping 100% tariffs and export controls in reaction to China’s new restrictions. Despite the positive developments in trade discussions with China, the price of bitcoin has failed to bounce back and has plummeted significantly beyond the previous sell-off lows. The Federal Reserve has also influenced market sentiment. Fed Chair Jerome Powell recently tempered expectations regarding a December rate cut, indicating that interest rates may stay elevated for an extended period. Powell indicated that further rate cuts might not be on the table for December. The central bank has lowered its benchmark interest rate by 0.25 percentage points, setting a new target range of 3.75%–4%. Powell stated that inflation, when excluding the effects of tariffs, is “not so far” from the central bank’s 2% target, but he highlighted that policymakers have “not made a decision about December.” Powell highlighted that officials expressed “strongly differing views” during the meeting.
The cut — the Fed’s second of 2025 following a move in September — marked the conclusion of an extended period of rate holds. The policy shift aims to reduce borrowing costs and bolster economic activity. The robust U.S. dollar has exerted pressure on non-yielding assets such as Bitcoin, intensifying the ongoing sell-off. Technical charts indicate that Bitcoin’s price has faced challenges in maintaining its 200-day moving average, which is a crucial long-term indicator. Experts indicate that the upcoming support level is around $96,000. Reclaiming $111,000 could mark the initial step in regaining momentum. Market sentiment indicates a sense of caution. The crypto fear and greed index plunged into “extreme fear” territory on Monday, marking a significant shift from the neutral readings observed just a week prior. According to the reports, open interest in Bitcoin perpetual futures has seen a decline of approximately 30% from its peaks in October, suggesting that leveraged traders are retreating from the market.
Some bulls continue to seize the opportunity by buying the dip. Strategy, the firm co-founded by Bitcoin evangelist Michael Saylor, acquired 397 BTC from October 27 to November 2 at an average price of $114,771. Their action represents a modest yet significant endorsement amidst the ongoing volatility. Investors are now focused on the upcoming U.S. Consumer Price Index report scheduled for release on Nov. 13. Positive inflation data might ignite speculation regarding a Federal Reserve easing, which could serve as a potential catalyst for Bitcoin’s rise. Sellers continue to hold the reins, and a prolonged close beneath $100,000 may lead to more significant declines. Despite the recent pullback, the long-term narrative surrounding Bitcoin continues to hold strong. The coin experienced a remarkable rise from $5,000 in March 2020 to over $126,000 by October 2025, showcasing its volatility and resilience in the market. Currently, traders are exercising caution, mindful of potential further declines as the market processes the significant losses experienced in October.