Bitcoin broke through US$100,000 for the first time in June, and downside risks still exist

Nakamoto 2025-11-5 12:07 79994人围观 BTC

It continues to be under pressure after the "flash crash" last month. The crypto market has fluctuated across the board, and currency prices have approached a bear market. Bitcoin prices fell below $100,000 on Tuesday for the first time since June. Bitcoi

After the "flash crash" last month, it continued to be under pressure. The encryption market fluctuated across the board, and currency prices were approaching a bear market.

Bitcoin prices fell below $100,000 on Tuesday for the first time since June. Bitcoin has struggled since a “flash crash” rocked the cryptocurrency space last month.

The largest cryptocurrency hit a low of $99,982 in afternoon trading before recouping some losses to rebound to $101,269, according to FactSet data.

As of 4 p.m. ET, Bitcoin was trading at $100,689.51, down 5.6% on the day. Dow Jones Market Data showed that this was Bitcoin’s worst trading day since April 3 and its worst three-day performance since a 9.9% drop on October 11. The weakness spread to ETFs holding bitcoin, with the iShares Bitcoin Trust ETF (IBIT) falling 5.5%, its biggest drop since April 7.

This latest pullback has put Bitcoin on the brink of bear market territory, down more than 19% from its October 6 closing high.

Steve Sosnick, chief strategist at Interactive Brokers, pointed out that Bitcoin has been under pressure since the "flash crash" on October 10, which shook the broader cryptocurrency field and triggered the largest liquidation in the history of the asset class.

He said: “The stock market had a bad day that Friday and has since recovered, but cryptocurrencies have never recovered. ”

The recent sell-off in cryptocurrencies like Bitcoin has coincided with the cooling off of some other popular momentum trades. Gold, small-cap stocks and quantum computing stocks such as Rigetti Computing Inc. (RGTI) also came under pressure on Tuesday.

“People are trading gold, people are trading uranium, people are trading quantum computing, people are trading small-cap stocks. ”"They are all rising and falling in tandem," said Ram Ahluwalia, chief investment officer at Lumida Wealth. ”

But he said the roots of the latest cryptocurrency sell-off can be traced to the October Fed meeting. The Federal Reserve announced its second interest rate cut this year on October 29. However, at a subsequent press conference, Fed Chairman Jerome Ball expressed some uncertainty about another rate cut in December. Ahluwalia explained that this is bad news for Bitcoin, as lower interest rates typically help boost speculative assets like cryptocurrencies.

Katie Stockton, founder and managing partner of Fairlead Strategies, noted earlier this week that Bitcoin has fallen below the 200-day moving average, suggesting there may be more downside in the near term. Her technical analysis shows that the next reliable level of support for Bitcoin will be around $94,200.

Ahluwalia noted that while Bitcoin is technically on the verge of a bear market, veteran cryptocurrency investors have weathered much larger declines over the years. “For veterans of this asset class, this isn't a big deal. ”"I think it's just a wash," he said. ”