Bitcoin’s Price Dips Below $100,000 Again
Bitcoin experienced a notable decline on Thursday, slipping beneath the $100,000 mark for the third time in November. This drop comes after the cryptocurrency had maintained a position above this threshold for six months. Despite the current challenges, experts continue to express optimism regarding the medium to long-term potential of cryptocurrencies.
The leading digital currency was recently valued at $99,611, reflecting a decrease of over 2% within a 24-hour period, as reported by CoinGecko. Bitcoin first fell below the significant $100,000 level on November 4, marking its first drop below this figure since May. It then fell again on November 7 after a brief recovery. In October, Bitcoin reached a record price of $126,080, but ongoing concerns about job market data have led to fears of an impending economic downturn.
Dilin Wu, a research strategist at Pepperstone, shared insights with Decrypt, suggesting that while Bitcoin may still reach new highs in the medium term, short-term volatility is to be anticipated. She noted, “Institutional participation and whale activities have decreased, and ETF outflows persist, indicating that the essential drivers for a sustained rally are currently lacking.”
In recent weeks, investors have withdrawn significant amounts from U.S. Bitcoin ETFs, contributing to price declines as billions in assets exit these funds. However, participants on Myriad Markets, a prediction platform associated with Decrypt’s parent company, Dastan, maintain a bullish outlook, estimating a 59% probability that Bitcoin will reach $115,000 before it drops to $85,000.
Meanwhile, Ethereum, the second-largest cryptocurrency, fell by approximately 5%, trading around $3,265. Solana also saw a minor decline of about 3.5%, priced near $148, while XRP gained 0.5% to reach $2.36 following news that a spot ETF linked to the asset began trading on Thursday.
Recent data from CoinGlass indicated that daily liquidations of crypto positions totaled $501 million, with Bitcoin contributing around $165 million to this figure. Long positions, which are bets that the asset’s price will rise, made up about $380 million of the total liquidations.
Despite the market’s fluctuations, some remain positive about cryptocurrency valuations. Joe DiPasquale, CEO of BitBull, remarked to Decrypt that he expects Bitcoin to rebound after its recent dip. “Bitcoin is maintaining an upward trend because each pullback has resulted in a higher low, and buyers are consistently defending support levels,” he stated. “This steady demand is also evident across major coins.”
Bitcoin’s decline on Thursday coincided with the reopening of the U.S. government after its longest shutdown in history, following President Trump’s signing of a funding bill late Wednesday, which had previously passed in the House of Representatives. Earlier on Wednesday, the White House attributed the shutdown to Democratic opposition and hinted at withholding consumer price index (CPI) data, a crucial economic indicator for traders.
According to data from the FedWatch tool, the likelihood of a rate cut that could enhance liquidity in digital asset markets has decreased to 66.9%, down from 85% the previous week. This downward shift reflects the recent hawkish stance of Fed Chairman Jerome Powell, who indicated that a rate cut was “not a foregone conclusion” after the central bank reduced rates by a quarter point in October. Furthermore, the Fed is contending with job data that consistently points toward a slowing economy. On Tuesday, ADP’s latest report revealed that U.S. employers had laid off over 11,000 workers per week through late October, while a separate Goldman Sachs report indicated a decline of 50,000 jobs in non-farm payrolls during October.
Editor’s note: This article has been updated with additional information since its initial publication.
