Bitcoin Price Drops Below $100,000: Signs of a Bear Market?
Bitcoin Price Falls Below $100,000
The Bitcoin price has slipped below the $100,000 mark for the first time in four months, losing nearly 6% of its value in a single day. This decline is largely due to a strengthening US dollar, significant outflows from Spot Bitcoin ETFs, and widespread liquidations in the crypto futures market. These factors have led investors to question the onset of a potential bear market. The ripple effect was felt across the crypto sector, with the total market capitalization dropping below $3.5 trillion for the first time in several months.
Market Dynamics
Despite starting October with a rally that pushed Bitcoin to a new all-time high of $126,000, the cryptocurrency struggled to maintain momentum, remaining in the $107,000 to $110,000 range for most of the month. The lack of strong buying pressure was evident, and this weakness carried into November, causing Bitcoin to briefly dip below $100,000.
The US dollar's rise has been a major challenge for Bitcoin, as the dollar index surpassed 100 for the first time since August, reflecting a shift towards safer assets amid uncertainty surrounding the Federal Reserve's interest-rate decisions. This has eroded confidence in the crypto market, leading to a wave of liquidations that wiped out billions of dollars in futures positions within hours.
Future Outlook: Bear Market Ahead?
The dip below $100,000 raises questions about the potential start of a bear market. Although Bitcoin has rebounded above $100,000 and is trading around $101,770, the recent losses and a rising dollar index suggest a cautious phase ahead. If Bitcoin falls below $100,000 again, it could signal an extended decline toward $90,000. However, technical analysis indicates that Bitcoin touching its 50-week moving average could precede a new all-time high, as seen in April 2025 when Bitcoin rebounded over 50% to reach $125,000.
Codeum continues to monitor these developments closely, providing insights into how market dynamics and blockchain security interplay.
Featured image created with Dall.E, chart from Tradingview.com