The price of Bitcoin (BTC) briefly fell below $100,000 last night, a level it hadn’t reached in many months. How much further could the largest cryptocurrency continue to fall?
Bitcoin price briefly dips below $100,000
The Bitcoin price had reached an all-time high just one month ago. But BTC’s performance has since cooled off: the cryptocurrency has lost 19% in a series of declines. Last night, it also broke through a psychological barrier, briefly dropping below $100,000:
Bitcoin price experiences sharp localized drops overnight
Although the cryptocurrency has since rebounded to $102,000, there was significant selling pressure overnight, clearly reflecting investor hesitation. In fact, BTC had not fallen below this key threshold in 181 days.
It’s also worth noting that the decline is even more pronounced for altcoins. Over the past month, Ethereum’s ETH has lost 27%, while XRP has fallen 25%. As for Solana’s BNB and SOL, they have lost 21% and 32%, respectively.
Why Are Cryptocurrencies Falling So Much?
The sharper declines in cryptocurrencies in recent days appear to have been triggered by several factors. In the United States, the Federal Reserve dashed the hopes of investors who were expecting another interest rate cut, which, as is often the case, dampens appetite for assets considered risky.
Furthermore, low risk appetite is evident more broadly. Stocks are also suffering declines amid a geopolitical landscape that remains tense.
From the perspective of institutional investors, spot ETFs continue to experience heavy outflows. The major spot Bitcoin ETFs have seen $1.3 billion flow out since October 29, according to data from SoSovalue.
Finally, there is a “trend” favoring other assets. According to a report by Wintermute, even as global liquidity increases and major central banks cut interest 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 low could Bitcoin’s price fall?
With the previous support level around $106,000 having been broken, analysts expected a drop below $100,000. If this happens again, the next support level could be around $94,000.
According to the TCN analyst, the sharp decline that began at the start of the month could then continue:
The lack of a reaction to the decline that began when Asian markets reopened on Monday leaves a bitter taste of a bear market. Whatever the market has in store for us this week, one thing is certain: buyers must step up; otherwise, capitulation among holders seems inevitable.
