The price of Bitcoin (BTC) briefly fell below $100,000 last night, a threshold it had not reached in many months. How far could the largest cryptocurrency continue to fall?
Bitcoin price briefly falls below $100,000
The price of Bitcoin reached an all-time high just one month ago. But BTC’s performance has since cooled enthusiasm: the cryptocurrency has lost 19% since then, in successive falls. Last night, it also passed a psychological threshold, briefly falling below $100,000:
Although the cryptocurrency has since regained $102,000, there were significant sell-offs overnight, clearly demonstrating investor hesitation. BTC had not fallen below this key threshold for 181 days.
It should also be noted that the decline has been even more pronounced for altcoins. Over the month, Ethereum’s ETH has lost 27%, while XRP has fallen 25%. Solana’s BNB and SOL have lost 21% and 32% respectively.
Why are cryptocurrencies falling so much?
The sharper falls in cryptocurrencies in recent days appear to have been triggered by several factors. In the United States, the Federal Reserve dashed investors’ hopes for another interest rate cut, which, as is often the case, dampened appetite for assets considered risky.
Furthermore, low risk appetite is more widespread. Stocks are also suffering from declines amid a tense geopolitical environment.
From an institutional investor perspective, spot ETFs continue to experience heavy outflows. According to data from SoSovalue, the main Bitcoin spot ETFs have seen $1.3 billion disappear since October 29.
Finally, there is a “bandwagon effect” that favors other assets. According to a report by Wintermute, even as global liquidity increases and major central banks cut rates, most new capital is flowing into stocks and AI rather than crypto assets. The only exception is the supply of stablecoins, which continues to grow.
How far could the price of Bitcoin fall?
With the former support level of around $106,000 broken, analysts expected a fall below $100,000. If this happens again, the next support level could be around $94,000.
According to the TCN analyst, the sharp movement that began at the start of the month could then continue:
The lack of reaction to the decline that began when Asian markets resumed trading on Monday leaves a bitter taste of a bear market in the mouth. Whatever the market has in store for us this week, one thing is certain: buyers must show their presence, otherwise the capitulation of holders seems inevitable.
