Bitcoin Falls Below $100K as Market Enters Extreme Fear with $1.3B Liquidations - November 05, 2025

Market Overview

Bitcoin experienced a significant downturn, falling below the crucial $100,000 threshold for the first time since May, triggering over $1.3 billion in liquidations across the cryptocurrency market. The flagship cryptocurrency dropped as low as $101,000 before recovering slightly to around $104,200, representing a decline of more than 3% in 24 hours. This dramatic selloff was accompanied by a surge in trading volume of over 79%, indicating intense market activity during the correction.

The broader cryptocurrency market entered "Extreme Fear" territory according to the Fear and Greed Index, with over 327,000 traders being wiped out in forced liquidations. Major altcoins followed Bitcoin's decline, with Ethereum dropping 5% to $3,520, Solana plunging 8% to $162, and other major cryptocurrencies experiencing similar double-digit losses. The total crypto market cap shrunk below $3.5 trillion, marking its lowest level since July.

Market analysts attribute the sharp correction to multiple factors, including renewed Federal Reserve hawkishness that strengthened the U.S. dollar and sparked risk-off sentiment across global markets. Fed Chair Jerome Powell's signals that further rate cuts are not guaranteed, combined with persistent inflation concerns, created additional pressure on speculative assets. The U.S. Dollar Index (DXY) surged to over 100, its highest level since August, further weighing on cryptocurrency prices.

Despite the current market turmoil, some analysts view this correction as a "healthy reset" after months of aggressive rallies, with institutional accumulation patterns still showing underlying strength in the Bitcoin ecosystem.

Major Negative News

• Bitcoin Crashes Below $100K Triggering Mass Liquidations: Bitcoin fell below the psychological $100,000 level for the first time since May, sparking over $1.3 billion in liquidations with long positions accounting for 90% of losses, creating a cascading selloff across the entire cryptocurrency market.

• Fed Hawkishness Sparks Risk-Off Panic: The Federal Reserve's hawkish stance, with Chair Jerome Powell signaling no guaranteed rate cuts and concerns about inflation being "on the wrong path," strengthened the dollar and triggered massive outflows from risk assets including cryptocurrencies.

• Long-Term Bitcoin Holders Offload 400K BTC: Significant selling pressure emerged from Bitcoin's long-term holder cohort, with 400,000 BTC being offloaded, while demand to absorb supply at higher prices remained weak, contributing to the sustained bearish momentum.

• Corporate Bitcoin Sales Add Selling Pressure: Sequans sold 970 BTC (approximately $100 million) to reduce debt obligations, adding to the overall selling pressure in an already fragile market environment.

• North Korean Crypto Crime Sanctions: The U.S. Treasury sanctioned eight individuals and entities connected to North Korean crypto laundering operations, highlighting ongoing regulatory concerns and the association of cryptocurrencies with illicit activities.

• Major DeFi Exploit Compounds Market Stress: Balancer suffered a $116 million exploit affecting V2 Composable Stable Pools, with the hacker converting stolen assets to ETH, adding to the negative sentiment during an already challenging market period.

Major Positive News

• Institutional Bitcoin Mining Expansion: Major Bitcoin miners MARA and Hut 8 reported surging profits and growing Bitcoin reserves in Q3, while MARA achieved record-high revenue, demonstrating the underlying strength of Bitcoin's infrastructure ecosystem.

• BlackRock Enters Australian Bitcoin ETF Market: BlackRock launched its iShares Bitcoin ETF on the Australian Stock Exchange with a 0.39% fee, signaling continued institutional expansion and growing global adoption of Bitcoin investment products.

• Analyst Predicts Bitcoin Rally to $120K: Despite current downward trends, comprehensive fundamental analysis suggests Bitcoin is in an institutional accumulation phase, with predictions pointing to an eventual climb back above $120,000 driven by controlled consolidation and Fed liquidity injections.

• Major Tech Companies Partner with Bitcoin Miners: Microsoft signed a $9.7 billion deal with Bitcoin miner IREN for AI cloud services, while Amazon also secured agreements with Bitcoin miners, highlighting the expanding utility and value proposition of Bitcoin mining infrastructure.

• Coinbase Pursues National Trust Charter: Coinbase applied for a national trust charter to bridge the gap between cryptocurrency and traditional finance, representing a significant step toward regulatory acceptance and mainstream integration.

• Post-Correction Recovery Potential: Analysts describe Bitcoin's "Red October" as a healthy correction that could fuel a bullish November, with some predictions targeting up to $150,000 by year-end as leverage is flushed from the system.

Key Risk Factors

• Federal Reserve Policy Tightening: Continued hawkish stance from the Fed with potential for higher interest rates and reduced liquidity could maintain pressure on risk assets including Bitcoin
• Technical Support Breakdown: Bitcoin's failure to hold key support levels around $107,000-$108,000, now acting as resistance, with potential for further decline to $99,000-$101,000 range
• Institutional Selling Pressure: Large-scale distribution by long-term Bitcoin holders combined with corporate treasury sales creating sustained downward pressure
• Macroeconomic Uncertainty: U.S. government shutdown adding to economic instability while strengthening dollar continues to weigh on cryptocurrency valuations
• Regulatory Scrutiny: Ongoing sanctions related to crypto crime and increasing regulatory oversight potentially dampening institutional enthusiasm
• Market Leverage Unwinding: Massive liquidations and deleveraging events creating cascading selling pressure and reducing market liquidity

Conclusion and Outlook

The cryptocurrency market is currently experiencing one of its most significant corrections in recent months, with Bitcoin's fall below $100,000 marking a critical juncture for the broader digital asset ecosystem. While the immediate sentiment is overwhelmingly negative, with extreme fear gripping traders and massive liquidations clearing leveraged positions, this correction may represent a necessary "reset" after an extended period of rapid price appreciation.

The fundamental drivers behind Bitcoin's long-term value proposition remain intact, with continued institutional adoption evidenced by major partnerships between tech giants and Bitcoin miners, expanding ETF offerings globally, and ongoing infrastructure development. The current selloff appears to be driven more by macroeconomic factors and technical deleveraging rather than fundamental weaknesses in the Bitcoin network or ecosystem.

However, the path forward will largely depend on Federal Reserve policy decisions and broader macroeconomic stability. If Bitcoin can successfully defend the $100,000 psychological level and reclaim key technical support zones, it may set the stage for a recovery rally. Conversely, a decisive break below this level could trigger additional downside toward the $70,000-$75,000 range as predicted by Elliott Wave analysis.

The market's ability to absorb the current selling pressure and demonstrate renewed institutional demand will be crucial for determining whether this correction marks a temporary setback or the beginning of a more prolonged bearish phase. Despite near-term challenges, the underlying trend toward mainstream Bitcoin adoption and infrastructure development suggests that patient long-term investors may view current levels as an attractive accumulation opportunity.

*Key Monitoring Points*: Watch for Bitcoin's ability to reclaim and hold above $107,000-$108,000 resistance levels, Federal Reserve policy signals and dollar strength, institutional Bitcoin ETF flows, long-term holder distribution patterns, and broader risk asset performance as indicators of market direction.

※ This report is provided for informational purposes only and is not investment advice or a recommendation. Investment decisions should be made at your own discretion and risk.

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