Bitcoin has dropped below $95,000, down 8% in a single day and over 24% from its all-time high in October. The global crypto market cap has fallen to $3.3 trillion, down about 6% in the past 24 hours. Altcoins have also taken a sharp hit, with Ethereum down over 10%, while XRP, Dogecoin, and Solana are all down 8–10%.
Fears that crypto may be entering a bear market have intensified.
The Crypto Fear and Greed Index has dropped to 16, signaling extreme fear. Data from Coinglass shows that total liquidations in the past 24 hours have exceeded $1.3 billion, with Bitcoin liquidations at $676 million. Meanwhile, U.S. spot Bitcoin ETFs saw $866 million in outflows yesterday.
Why Is Bitcoin Dropping?
Cryptoquant analysts note that Bitcoin’s drop below $100,000 is being driven largely by U.S. market forces. Data shows that U.S. investors are selling more aggressively than buyers in Asia or Europe, with Bitcoin recovering overnight but dropping sharply during U.S. trading hours.
Long-term Bitcoin holders across all age cohorts are selling at the same time. This is rare and strongly suggests year-end tax optimization among U.S. investors. Thirdly, the U.S. government shutdown has severely tightened liquidity, removing billions of dollars from the market.
Along with weaker expectations for a December rate cut, the overall risk appetite in the U.S. has weakened sharply, causing U.S. equities, crypto-linked stocks, and Bitcoin to fall. Analysts note that markets may stabilize as liquidity returns in the coming weeks, but the near-term pressure remains influenced by U.S. market dynamics.
Bitcoin May Test $92K–$93K Levels
Investor Ted Pillows notes that people are starting to panic as the market continues to bleed slowly. He warns that if a major negative event occurs in this already fragile environment, this could trigger sharp panic and lead to a “capitulation” move, wiping out the weak hands fast.
In an earlier update, he had noted that the next major support for Bitcoin is around the $92,000-$93,000 level, which also has a CME gap. Bitcoin could move down to fill this CME gap before any relief rally occurs.
Is The Bull Market Intact?
However Cryptoquant CEO Ki Young Ju notes that capital is still flowing into Bitcoin and if major whale selling eases and broader market sentiment turns positive, Bitcoin could rebound any time. He also notes that investors who entered Bitcoin 6 to 12 months ago have a cost basis near $94,000. So a bear market isn’t confirmed unless Bitcoin falls below this level.
https://x.com/saylor/status/19 89308024817598534
Saylor Says “HODL”
Amidst the market downturn which has left investors frustrated, Michael Saylor, founder and chairman of Strategy, posted a “HODL” message on X, hinting that the current correction could present a buying opportunity amid the broader market weakness.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.