Bitcoin Crashes Below $100,000, Dragging Crypto Market Down Amid Macro Concerns
Bitcoin recently crashed through the key psychological level of $100,000, leading to a widespread sell-off across the broader cryptocurrency market. Fear and uncertainty have once again taken hold, driven by worsening macroeconomic conditions and geopolitical tensions.
On Tuesday, November 4, Bitcoin’s price plunged to a daily low of $99,954—the lowest level seen in several months. This marked the first time since July that BTC fell below the $100,000 mark, a level it had managed to hold for months. The last time Bitcoin traded under $100,000 was on June 23, when it hit a daily low of $99,705.
The drop triggered a significant market reaction, with the overall crypto market capitalization shrinking by 6.4%, losing over $300 billion in value. Bitcoin’s price has since rebounded slightly to around $100,269 but still registered a sharp 6% decline on the day.
Why Did Bitcoin Plummet?
The decline came amid intensifying macroeconomic pressures that dampened investors’ appetite for risk assets. Concerns over a potential government shutdown, threats of new tariffs, and expectations of a pause in Federal Reserve rate cuts all contributed to a less favorable environment for cryptocurrencies.
These factors sparked a cascade of selling pressures, including consistent outflows from Bitcoin (BTC) and Ethereum (ETH) ETFs, which have now seen five consecutive days of negative flows. Additionally, liquidations soared, with 24-hour liquidations reaching $1.4 billion on November 4, dominated by $1 billion in long position liquidations.
What’s Next for Bitcoin?
Following this breakdown below a critical support level, traders are closely watching the $98,000 zone. This area is considered a key support level and a high-liquidity zone, which could provide a line of defense against further declines.
Meanwhile, the U.S. dollar has seen a modest rebound since the Federal Reserve’s interest rate cuts in September, adding an additional dynamic to the shifting market outlook.
In summary, Bitcoin’s slip below $100,000 reflects growing uncertainty driven by macroeconomic and geopolitical headwinds. Market participants will be closely monitoring upcoming developments to gauge the cryptocurrency’s next move.
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