The price of Bitcoin has plummeted below $95,000, marking an 8% drop in a single day and a 24% decrease from its all-time high in October. The global crypto market cap has also fallen to $3.3 trillion, experiencing a 6% decline over the past 24 hours. Altcoins such as Ethereum, XRP, Dogecoin, and Solana have all taken significant hits, with Ethereum down over 10% and the others falling 8–10%.
Concerns about the possibility of a bear market in the crypto space have grown more pronounced.
The Crypto Fear and Greed Index has dropped to 16, indicating extreme fear among investors. Data from Coinglass shows that total liquidations in the past 24 hours have surpassed $1.3 billion, with Bitcoin liquidations amounting to $676 million. At the same time, U.S. spot Bitcoin ETFs witnessed outflows of $866 million yesterday.
Reasons Behind Bitcoin’s Decline
According to Cryptoquant analysts, Bitcoin’s drop below $100,000 is primarily driven by U.S. market forces. Data suggests that U.S. investors are selling more aggressively than their counterparts in Asia or Europe, leading to Bitcoin bouncing overnight but plummeting sharply during U.S. trading hours.
Furthermore, long-term Bitcoin holders across all age groups are selling simultaneously, indicating a rare occurrence that strongly hints at year-end tax optimization by U.S. investors. The U.S. government shutdown has significantly restricted liquidity by withdrawing billions of dollars from the market.
Combined with diminished expectations for a December rate cut, the overall risk appetite in the U.S. has significantly decreased, causing U.S. equities, crypto-related stocks, and Bitcoin to decline. Analysts anticipate that the markets may stabilize as liquidity returns in the following weeks, but the immediate pressure continues to be influenced by U.S. market dynamics.
Potential Bitcoin Price Levels
Investor Ted Pillows warns that panic is starting to set in as the market continues to slowly bleed. He cautions that a major negative event in this already fragile environment could trigger intense panic and lead to a rapid “capitulation” move, wiping out weak hands swiftly.
In a previous update, he highlighted that the next significant support zone lies around $92,000–$93,000, aligning with a CME futures gap. Bitcoin may descend to fill this CME gap before any relief rally occurs.
Is The Bull Market Still Viable?
Despite the current downturn, Cryptoquant CEO Ki Young Ju notes that capital continues to flow into Bitcoin. If major whale selling subsides and broader market sentiment turns positive, Bitcoin could rebound at any moment.
He also points out that investors who entered the Bitcoin market 6 to 12 months ago have a cost basis near $94,000. Therefore, a bear market is not confirmed unless Bitcoin drops below this level.
https://x.com/saylor/status/1989308024817598534
Saylor’s “HODL” Advice
Amidst the market turmoil that has left investors feeling frustrated, Michael Saylor, founder and chairman of Strategy, shared a “HODL” message on X, suggesting that the current correction could present a buying opportunity amidst broader market weakness.
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