The Bitcoin Price Bleed Continues: Drops Below $100,000 Amid Market Turbulence
The bitcoin price hemorrhaging shows no signs of stopping. For the first time since June, Bitcoin’s price tumbled below the $100,000 mark, hitting a fresh low amid a challenging period for the world’s leading cryptocurrency. Bitcoin’s price briefly dropped to $99,913 before rebounding slightly to $100,575 at the time of writing.
This steep slide comes as investors flee risk assets amid mounting macroeconomic headwinds. Early Tuesday saw Bitcoin fall more than 5%, briefly testing levels unseen in months. Traders grew increasingly nervous as the coin broke below a critical technical support level around $104,000—a move that has fueled concerns about further imminent losses.
Spot Bitcoin ETFs have experienced significant withdrawals, with investors pulling over $1.8 billion from Bitcoin and Ethereum products in the past few trading days. Ethereum and Solana were hit even harder, each falling more than 5%. Meanwhile, crypto-linked stocks such as MicroStrategy, Coinbase, and Robinhood also slipped by at least 3%.
“The crypto market today is facing multiple near-term headwinds,” said Derek Lim, Head of Research at Caladan, as reported by Bloomberg. “This is hitting a market that is already fragile from October’s massive liquidation event and a string of hacks.”
Origins of the Downturn: The Impact of Tariffs and Export Controls
The resistance to Bitcoin’s price recovery began on October 10, when Bitcoin and the broader crypto market experienced a sharp sell-off following President Trump’s announcement of sweeping 100% tariffs and export controls in response to China’s new restrictions. Despite improvements in trade talks with China, Bitcoin’s price has failed to rebound fully and has slumped well below the lows seen during that initial sell-off.
The Federal Reserve’s Hawkish Stance Adds Pressure
Adding to the negative sentiment, the Federal Reserve’s recent monetary policy moves have weighed heavily on Bitcoin. Fed Chair Jerome Powell tempered expectations for a December rate cut, signaling that interest rates could remain higher for longer. Powell stated that additional rate cuts might not occur in December.
The Fed recently reduced its benchmark interest rate by 0.25 percentage points to a target range of 3.75%–4%, marking the second cut in 2025 after a long pause since September. Powell noted that inflation excluding tariffs is approaching the central bank’s 2% target but emphasized that there is no finalized decision for December, mentioning “strongly differing views” among officials.
This monetary policy shift aims to lower borrowing costs and support economic activity, but a stronger U.S. dollar has simultaneously pressured non-yielding assets like Bitcoin, adding fuel to the sell-off.
Technical Outlook and Market Sentiment
From a technical perspective, Bitcoin has struggled to maintain its position above the 200-day moving average, a key long-term indicator. Analysts identify the next support level near $96,000. On the upside, reclaiming $111,000 would represent an important first step for regaining momentum.
Market sentiment reflects considerable caution. The Crypto Fear and Greed Index shifted to “extreme fear” on Monday—a stark contrast to last week’s neutral readings. Additionally, open interest in Bitcoin perpetual futures has dropped roughly 30% from October peaks, indicating that leveraged traders are pulling back, according to Bitcoin Magazine Pro.
Despite the cautious environment, some bulls remain active. Strategy, the firm 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 signals a small but notable vote of confidence amid the turbulence.
Looking Ahead: Inflation Data and Bitcoin’s Long-Term Prospects
Investors now turn their attention to the upcoming U.S. Consumer Price Index (CPI) report, due November 13. Cooler inflation data could spark speculation around Fed easing, potentially providing a boost to Bitcoin.
Until then, sellers remain in control. A sustained close below $100,000 could trigger deeper losses in the near term. However, despite the recent pullback, Bitcoin’s long-term story remains intact. The cryptocurrency skyrocketed from $5,000 in March 2020 to over $126,000 in October 2025, underscoring its volatility and resilience.
For now, traders are treading carefully, wary of further downside as the market continues to digest October’s historic losses.
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