Bitcoin’s Sharp Decline: Understanding the Crash Below $100,000
The cryptocurrency market has witnessed a significant downturn, with Bitcoin crashing through the key psychological level of $100,000. This decline has had a ripple effect on the rest of the crypto market, leading to a broader sell-off. According to recent data, Bitcoin’s price fell to a daily low of $99,954 on November 4, marking the lowest point since June. This development has sparked concerns among investors and traders, who are now closely watching the market for any signs of recovery.
Liquidations heat map for major crypto assets | Source: Coinglass
The decline in Bitcoin’s price has been attributed to worsening macro conditions, which have reduced the appetite for risk assets. The threat of new tariffs and the potential pause in new Federal Reserve rate cuts have made crypto assets less attractive to investors. As a result, Bitcoin and Ethereum ETFs are on track to register their fifth consecutive day of negative flows. Furthermore, 24-hour liquidations reached $1.4 billion on November 4, with longs dominating with $1 billion.
Key Factors Contributing to the Decline
The $100,000 level served as a key psychological barrier for Bitcoin, and its breach has triggered a significant decline in the crypto market. The last time Bitcoin’s price was below $100,000 was on June 23, when it reached a daily low of $99,705. The current decline has resulted in the crypto market cap losing 6.4% of its value, equivalent to over $300 billion. Shares of Strategy were also down 6%, mirroring the decline in Bitcoin’s price.
Daily Bitcoin and Ethereum ETF net flows | Source: CMC
Market Outlook and Support Levels
Following Bitcoin’s price drop below the $100,000 level, further breakdown is possible. Traders are now looking at the $98,000 support level, which is both the low end and a high-liquidity zone. The U.S. dollar has also rebounded slightly since the Fed cut interest rates in September. As the market continues to evolve, it is essential for investors and traders to stay informed and adapt to the changing conditions.
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