Bitcoin Slides Below $100,000 as Market Fear Soars, Analysts Warn of Further Declines

The world’s largest cryptocurrency, Bitcoin, has slipped below the crucial $100,000 threshold for the first time since June 2025, triggering more than $1.8 billion in liquidations across the market.

After reaching an all-time high of $126,000 in October, Bitcoin has now fallen more than 20%, prompting heightened concerns that the selloff may continue.

Market analysts attribute part of the decline to increased selling pressure from long-term holders a trend expected as the asset matures and sees higher valuations. The downturn has been so pronounced that Bitcoin has underperformed U.S. Treasuries so far in 2025. The Crypto Fear & Greed Index, used to gauge overall market sentiment, fell to 21 out of 100 on Tuesday, reflecting “Extreme Fear.”

At the time of reporting, Bitcoin had rebounded slightly to $101,806 after briefly dipping just above $99,000. The current weakness stands in stark contrast to recent bold forecasts from prominent Bitcoin advocates, who just weeks earlier said the cryptocurrency still had the potential to reach $250,000 before the end of the year.

Gerry O’Shea, head of global market insights at crypto asset manager Hashdex, noted that speculation surrounding a potential pause on rate cuts by the Federal Open Market Committee, coupled with concerns over tariffs, credit markets, and equity valuations, contributed to the broader market downturn.

Institutional movements also played a key role. U.S.-listed Bitcoin and Ethereum spot ETFs recorded combined net outflows of $797 million on Tuesday. Data from SoSoValue shows that spot Bitcoin ETFs alone saw $577.74 million in net outflows—the largest single-day withdrawal since August 1.

Fidelity’s FBTC led with $356.6 million in outflows, followed by Ark & 21Shares’ ARKB at $128 million, and Grayscale’s GBTC at $48.9 million. Seven Bitcoin ETFs posted negative flows, stretching the outflow streak to five consecutive days with a total of $1.9 billion withdrawn.

Julio Moreno, head of research at CryptoQuant, cautioned that Bitcoin could fall to $72,000 within one to two months if it fails to hold the $100,000 support level. He pointed to weakening demand following the major October 10 liquidation event that wiped out over $20 billion in leveraged positions.

“Spot demand has contracted, ETF inflows turned negative, and our Bull Score Index remains deep in bearish territory,” he noted, describing the broader environment as a “risk-off” market influenced by uncertainty surrounding global trade and monetary policy.

Technical analysts are also signaling caution. Trader Captain Faibik identified a rising wedge pattern on Bitcoin’s weekly chart, a structure that often precedes sharp downward movement. He stated that he is “no longer bullish” in the near term and expects Bitcoin could decline to around $72,000, with a possible lower target near $55,000 if major support levels break.

Despite the ongoing selloff, some market experts remain optimistic about Bitcoin’s long-term trajectory. Speaking on the Bankless podcast in early October, BitMine chair Tom Lee and BitMEX co-founder Arthur Hayes reaffirmed their earlier predictions that Bitcoin could still reach $200,000 to $250,000 before year-end.

Lim of Caladan, echoed a cautiously optimistic view, noting that while a delayed interest rate cut may pose short-term challenges, overall macro conditions still favor eventual bullish momentum. He highlighted that despite the recent 21.5% pullback from $125,000 to $99,000, the decline is milder than the 31% correction earlier in the year during heightened tariff concerns. “The bullish structure remains intact, even if sentiment appears to be at rock bottom,” Lim said. “However, heightened volatility is likely to persist.”

Outlook

As Bitcoin stands at a critical inflection point, analysts suggest that the coming weeks will determine whether the current pullback is a temporary correction or the start of a deeper downturn.