Why Bitcoin Plunged Below $100,000 for the First Time Since June?

On Wednesday, November 5, 2025, Bitcoin fell below $100,000, marking the first such drop since June of this year. This fall occurred amid a broad sell-off in the cryptocurrency market, with the total market capitalization declining by a massive $880 billion over the past month. Since reaching an all-time high of $126,182 on October 6, Bitcoin has lost nearly 27% of its value in just 29 days.

Market by the Numbers

Over the past 24 hours, Bitcoin has fallen by approximately 6.4%, reaching around $99,705. Other cryptocurrencies also suffered from the general decline:

- Ethereum — down ~19.8%
- XRP — down ~17%
- BNB — down ~17%
- Solana — down ~21%

Main Reasons for Bitcoin's Decline

1. Monetary Policy and Liquidity
Bitcoin's rally was driven by low interest rates and growing liquidity. However, the Federal Reserve (Fed) has signaled a low likelihood of further rate cuts, which has curbed investor interest in risky assets like cryptocurrencies.

2. Weak Sentiment and Risk Aversion
Investors began to shift away from high-risk assets, switching to more stable instruments such as gold and bonds, which are traditionally considered safe havens during volatile times.

3. Liquidation Cascade
Massive selling of crypto derivatives positions exacerbated the decline. An estimated $19 to $30 billion was liquidated in a short period, putting additional pressure on prices.

4. Exhaustion of Bullish Momentum and Profit Taking
After a rapid rise to $110,000-$120,000, many market participants began taking profits, which also contributed to the decline in prices.

What's next for Bitcoin?

Technically, Bitcoin is currently testing the support level near $99,044. If this level is broken, the next downside targets could be $97,839 and $94,049. Investors will focus on Federal Reserve decisions and the liquidity situation. If rates remain higher than expected, the risk of further decline increases.

Nevertheless, many analysts remain optimistic about the long-term outlook. A price drop doesn't necessarily mean the end of all models, but rather a correction after an extreme rally.

What does this mean for market participants?

- Long-term investors: If you're considering holding Bitcoin long-term, the current correction could be a good entry point, but it's important to consider the increased risk profile.
- Active traders: Closely monitor liquidations, trading volumes, and key levels to make informed decisions.

In conclusion

Bitcoin's current decline highlights the importance of monitoring market conditions and macroeconomic factors. Investors should be prepared for volatility and make informed decisions based on an analysis of the current situation.