Bitcoin’s price has dropped below $100,000 for the first time since June 2025, driven by a major sell-off from long-term holders liquidating approximately $45 billion in BTC amid broader market risk aversion and declines in AI stocks.
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Bitcoin fell over 8% this week, breaking key support levels and entering bear market territory after a 20% correction from its recent high.
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Long-term holders contributed to the downturn by selling around $45 billion worth of BTC, reflecting heightened investor caution.
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The decline aligns with sharp drops in AI-related stocks, fostering a risk-off sentiment; however, technical indicators like the 200-week EMA near $100,950 provide potential support, with historical data showing rebounds from this level.
Bitcoin price below $100,000: Explore the reasons behind the 8% weekly drop, long-term holder sell-offs, and potential recovery signals in this crypto market analysis. Stay informed on volatility and investment risks.
What Caused Bitcoin’s Price to Drop Below $100,000?
Bitcoin’s price below $100,000 stems from a significant sell-off this week, where the cryptocurrency declined over 8%, marking its first drop under this threshold since June 2025. Long-term holders liquidated approximately $45 billion in BTC, amplifying the downturn amid rising market volatility. This movement coincides with broader financial pressures, including declines in AI-related stocks that have shifted investor sentiment toward risk aversion across asset classes.
How Are Long-Term Bitcoin Holders Contributing to the Sell-Off?
Long-term Bitcoin holders, often seen as a stabilizing force in the market, have offloaded substantial positions totaling around $45 billion in BTC during this correction. According to data from The Kobeissi Letter, this activity has pushed Bitcoin into bear market territory following a roughly 20% decline from its October high. Such sales typically occur when holders perceive elevated risks or seek to realize gains, but they can exacerbate short-term price pressure. Expert analysis indicates that while this reduces available supply in the long run, immediate effects include increased volatility. Historically, similar events have preceded periods of consolidation rather than sustained downtrends, provided key technical supports hold. For instance, Bitcoin’s current position above the 200-week exponential moving average at approximately $100,950 has acted as a reliable floor since late 2023, supporting rebounds in past cycles. The weekly relative strength index (RSI) hovering near 45 also signals potential oversold conditions, a level that has often led to bullish reversals. However, sustained selling could test these levels further, underscoring the importance of monitoring holder behavior amid ongoing economic uncertainties.
Frequently Asked Questions
What Factors Are Linking AI Stock Declines to Bitcoin’s Price Below $100,000?
The connection arises from a broader risk-off sentiment in financial markets, where sharp drops in AI-related stocks have prompted investors to reduce exposure to high-volatility assets like Bitcoin. As AI sectors face corrections due to overvaluation concerns and shifting economic indicators, capital flows away from speculative investments, including cryptocurrencies. This week’s 8% Bitcoin decline mirrors these trends, with approximately $45 billion in BTC sales by long-term holders adding downward pressure. Market data shows correlations strengthening during periods of uncertainty, but historical patterns suggest crypto rebounds once traditional markets stabilize.
Can Bitcoin Avoid a Prolonged Bear Market After Dropping Below $100,000?
Yes, Bitcoin could steer clear of a extended bear market if it maintains support above critical technical levels like the 200-week exponential moving average near $100,950 and the RSI at around 45. These indicators have historically signaled buying opportunities during corrections, leading to recoveries. External factors, such as potential U.S. Federal Reserve liquidity measures, may also bolster prices, helping Bitcoin sustain its long-term upward trajectory despite current volatility.
Key Takeaways
- Significant Sell-Off Impact: Long-term holders liquidated $45 billion in BTC, driving an 8% weekly drop and pushing prices below $100,000 for the first time since June.
- Technical Support Levels: Bitcoin remains above the 200-week EMA at $100,950, a historically reliable support that has preceded rebounds in prior corrections.
- Potential Liquidity Boost: U.S. fiscal policies, including subtle Federal Reserve interventions, could enhance dollar liquidity and support a Bitcoin rally once resolved.
Conclusion
This week’s Bitcoin price below $100,000 highlights the interplay of long-term holder sell-offs and broader market dynamics, including AI stock declines and liquidity concerns from U.S. fiscal policies. While the cryptocurrency has entered a correction phase with a 20% drop from recent highs, key technical supports like the 200-week EMA suggest resilience in its bullish structure. As political uncertainties around potential government shutdowns resolve, anticipated liquidity improvements could pave the way for recovery. Investors should remain vigilant, focusing on risk management in this volatile environment, and consider these developments as opportunities within the evolving crypto landscape.
Market volatility has intensified as Bitcoin navigates this downturn, but underlying indicators point to potential stabilization. The sell-off, while notable, aligns with historical patterns where corrections have given way to renewed growth, especially if external liquidity supports materialize. Arthur Hayes, former CEO of BitMEX, emphasizes the role of U.S. Federal Reserve actions, stating, “If the Fed’s balance sheet grows, that is dollar liquidity positive, and ultimately pumps the price of Bitcoin and other cryptos.” His analysis of “stealth quantitative easing” through mechanisms like the Standing Repo Facility underscores how deficit financing—nearing $2 trillion annually—could indirectly benefit risk assets. Traditional buyers of Treasury debt, such as foreign central banks and U.S. households, have not kept pace with supply, leaving hedge funds to absorb it via repo loans. When liquidity tightens, Fed interventions effectively inject new dollars, mimicking QE without overt announcements.
Amid these fiscal dynamics, the ongoing U.S. political deadlock and shutdown risks continue to drain liquidity, contributing to Bitcoin’s recent slide. Betting markets indicate a resolution may come soon, potentially as early as next week, which could alleviate current pressures. Hayes advises against viewing this stagnation as a market peak, noting, “The system only has two modes: Print money or destroy money. Right now, it’s the latter—but not for long.” This perspective aligns with observations from market analysts who track liquidity flows, suggesting an impending surge once hurdles are cleared.
From a technical standpoint, Bitcoin’s position offers cautious optimism. The 200-week EMA has proven instrumental in past cycles, providing a baseline for long-term holders to accumulate during dips. Since late 2023, tests of this level have consistently led to upward movements, reinforcing its significance. The RSI at 45 further supports this view, as it approaches oversold territory without breaking lower, a common setup for reversals. Should Bitcoin hold these supports, the structurally bullish outlook persists; a breach, however, might invite deeper corrections.
Broader market sentiment reflects growing risk aversion, with AI stocks’ declines spilling over into crypto. Investors are reevaluating positions in high-growth sectors amid economic signals like persistent deficits and tightening liquidity. Yet, Bitcoin’s decentralized nature and fixed supply continue to attract those seeking hedges against traditional finance uncertainties. As the crypto market matures, such events underscore the need for diversified strategies and informed decision-making.
In summary, while the Bitcoin price below $100,000 marks a pivotal moment, it does not necessarily herald a bearish regime. Technical resilience, coupled with prospective policy tailwinds, positions the asset for potential upside. Stakeholders should monitor key levels and macroeconomic shifts closely to navigate this phase effectively.
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