Why Did The Bitcoin Price Crash Below $100,000? The Bear Market Is Here
The Bitcoin worth has fallen under $100,000 for the primary time in 4 months, wiping out almost 6% of its worth inside a single day. The drop could be attributed to a strengthening US greenback, outflows from Spot Bitcoin ETFs, and big liquidations throughout the crypto futures market, inflicting traders to query whether or not the long-anticipated bear market has lastly arrived. Notably, Bitcoin’s correction additionally rippled by means of the entire crypto sector, the place the full market capitalization fell under $3.5 trillion for the primary time in months.
Bitcoin Price Crashes Below $100,000
Bitcoin has spent the previous 30 days with a scarcity of clear bullish worth motion. Although it started October with a rally to interrupt above $126,000 for the primary time, which was a brand new all-time high, the vast majority of October was highlighted by the main cryptocurrency struggling to leave the $107,000 to $110,000 worth vary behind.
The extended interval of sideways buying and selling hinted at a scarcity of sturdy shopping for stress, and the weakness has spilled into November. This has, in flip, induced the main cryptocurrency to crash under $100,000 prior to now 24 hours, albeit just for a brief interval.
A surging US greenback has turn into one of many greatest headwinds for Bitcoin’s latest worth motion. The greenback index, which tracks the greenback’s power in opposition to a basket of main currencies, climbed above 100 for the primary time since August. This transfer mirrored rising investor desire for safer belongings, particularly as uncertainty across the Federal Reserve’s subsequent interest-rate determination continues to hold over international markets.
The impression of this has been most seen within the crypto sector, the place confidence has eroded quickly. Bitcoin and Ethereum fell massively as merchants exited leveraged positions en masse. The sudden sell-off created a chain reaction of liquidations throughout exchanges that worn out billions of {dollars} in futures positions inside hours.
In Bitcoin’s case, its market cap dropped by as high as 5.8% in simply 24 hours, falling to round $2 trillion. Trading exercise has surged massively in the course of the downturn, crossing over $100 billion.
Is A Bear Market On The Horizon?
The crash under $100,000 opens up questions on whether or not the bear market has formally begun. The Bitcoin worth continues to be up 8% on a yearly foundation, however the scale of latest losses alongside the rising US greenback index factors to a extra cautious part forward. At the time of writing, Bitcoin has already rebounded above $100,000 and is now pushing in the direction of $102,000. The rebound implies that a bit of merchants has seized the chance to build up extra in the course of the dip, and Bitcoin is now buying and selling at $101,770.
If the Bitcoin worth slips under $100,000 once more, then it opens up the opportunity of an prolonged decline in the direction of $90,000. On the opposite hand, bullish technical analysis exhibits that the crash induced Bitcoin to the touch its 50-week shifting common, a stage that’s at all times preceded a brand new all-time high.
The final time this assist was examined was in April 2025, and what adopted was a strong rebound that despatched the Bitcoin worth hovering greater than 50% to achieve $125,000 within the months that adopted.
