Bitcoin briefly traded below $100,000 on November 4, 2025, marking its lowest point since June amid a crypto market downturn triggered by U.S. Federal Reserve signals on interest rates. This drop reflects shifting investor sentiment, with liquidations exceeding $915 million since early November.
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Fed Chairman Jerome Powell’s comments tempered expectations for a December rate cut, reducing market probability from 96% to under 70%.
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The Crypto Fear and Greed Index has entered ‘Extreme Fear’ territory, amplifying risk-off behavior across digital assets.
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Despite the volatility, Bitcoin’s long-term uptrend persists, with potential rebounds driven by ETF inflows or renewed rate cut hopes; historical drawdowns of 30% or more have preceded rallies, as seen in its climb to a $126,300 all-time high.
Bitcoin price dips below $100k after Fed meeting: Explore causes, impacts, and recovery outlook in this crypto market update. Stay informed on volatility—key insights for investors now.
What Caused Bitcoin’s Price to Drop Below $100,000?
Bitcoin’s price drop below $100,000 occurred on November 4, 2025, following the U.S. Federal Reserve’s latest meeting where Chairman Jerome Powell indicated that a December interest rate cut is not guaranteed. This statement shifted market expectations, leading to a broader crypto sell-off and Bitcoin reaching its lowest level since June. The event underscores how macroeconomic policies continue to influence cryptocurrency valuations, with investors reassessing risk in a potentially tighter monetary environment.
How Has the Federal Reserve’s Decision Impacted the Crypto Market?
The Federal Reserve’s cautious stance on interest rates has directly pressured the crypto market, as higher-for-longer rates reduce liquidity and deter speculative investments. Prior to the meeting, traders priced in a 96% chance of a December cut, but Powell’s remarks dropped this to less than 70%, according to market data from platforms like eToro. This adjustment triggered over $915 million in liquidations across crypto assets since early November, per reports from blockchain analytics firms such as Chainalysis and Glassnode.
Simon Peters, Crypto Market Analyst at eToro, explained the sentiment shift: “The market’s probability of a rate cut stood as high as 96%. After the press conference, this dropped drastically to less than 70%, highlighting a clear shift toward risk-off sentiment. The Crypto Fear and Greed Index has since fallen into ‘Extreme Fear’ territory.” This fear gauge, which measures market volatility and investor emotions, now signals heightened caution, potentially leading to further short-term declines.
Historically, such corrections are common in Bitcoin’s volatile landscape. For instance, between January and April 2025, Bitcoin fell from $109,000 to $74,500—a 32% drawdown—before rebounding 70% to its all-time high of $126,300. Data from CoinMetrics shows that Bitcoin has endured multiple 30%+ corrections in recent years, often rebounding strongly due to its resilient network fundamentals and growing institutional adoption.
Broader market data reinforces this pattern. Trading volume spiked by 25% during the dip, indicating panic selling, while on-chain metrics from Glassnode reveal increased whale accumulation, suggesting long-term holders view the dip as a buying opportunity. Experts like Peters emphasize that while unsettling, this volatility aligns with Bitcoin’s maturation as an asset class, now boasting over $2 trillion in total market capitalization.
Frequently Asked Questions
What triggered the recent Bitcoin price drop below $100,000 in November 2025?
The drop was primarily triggered by U.S. Federal Reserve Chairman Jerome Powell’s comments signaling no assured December interest rate cut, reducing market optimism from 96% probability to under 70%. This led to $915 million in liquidations and a shift to ‘Extreme Fear’ on the Crypto Fear and Greed Index, per eToro analysis and blockchain data.
Will Bitcoin recover from this price dip soon?
Bitcoin’s recovery potential depends on short-term catalysts like renewed rate cut expectations or spot Bitcoin ETF inflows, which have already surpassed $50 billion in assets under management this year. Analysts at eToro note its long-term uptrend, with higher highs and lows intact, suggesting a rebound could mirror past 70% rallies following similar 30% corrections.
Key Takeaways
- Macroeconomic Sensitivity: Bitcoin remains highly responsive to U.S. Federal Reserve policies, with interest rate signals driving immediate price volatility as seen in the recent $100,000 breach.
- Historical Resilience: Despite $915 million in liquidations, Bitcoin’s pattern of 30%+ drawdowns followed by strong recoveries—such as the 70% surge to $126,300—highlights its long-term uptrend.
- Investor Strategy: Monitor ETF inflows and the Crypto Fear and Greed Index for rebound signals; consider dollar-cost averaging to navigate volatility without timing the market.
Conclusion
In summary, Bitcoin’s price drop below $100,000 reflects the crypto market’s reaction to tempered Federal Reserve interest rate cut expectations, amplified by liquidations and fear-driven sentiment. While short-term pressures persist, Bitcoin’s historical resilience and ongoing institutional interest point to sustained growth. Investors should stay vigilant on macroeconomic developments, as renewed policy shifts could propel prices toward new highs—position yourself informed for the next crypto wave.
