Bitcoin fell below the US$ 100,000 threshold for the first time since June, slipping amid a sweeping crypto correction that has erased more than 20% from its peak just last month. The decline underlines growing headwinds for digital-assets as risk-off sentiment returns.
The critical breach of US$ 100,000 marks one of the most significant short-term jolts for Bitcoin in recent months. After reaching a new all-time high above US$ 126,000 early in October, the price has now dropped more than 20%, exposing the fragility of the recent rally. The corrective move appears to be driven by several intersecting forces: heavy leverage in derivatives markets, institutional repositioning, and renewed macro uncertainty.
On the derivatives front, traders were shaken by large liquidation events earlier in October and a sharp drop in open interest, suggesting the crowd was heavily exposed. On-chain data show that short-term holders and new entrants have been among the most active, often exiting at or near loss levels—indicating a potential capitulation phase. At the same time, institutional flows, while still present, have not picked up sufficient offsetting demand, leaving a mood of caution.
Support levels cracked as leverage, sentiment and macro pressures converge
From a macro perspective, the timing is telling: the Federal Reserve signalled that further rate cuts may not be forthcoming, dampening the appeal of risk assets including cryptocurrencies. The stronger U.S. dollar and tighter liquidity backdrop weigh directly on non-yielding assets like Bitcoin. On the technical side, the breakdown of key support around US$ 104,000-110,000 created a vacuum of bids. With the next meaningful support zone closer to US$ 96,000 or even US$ 90,000, the path for downside appears more open than many had expected.
For investors and traders, the message is clear: this is not a routine pullback but a market-wide reassessment of crypto risk. While long-term fundamentals—such as network adoption and institutional infrastructure—remain intact, the near-term environment is less forgiving. Expect volatility to remain elevated, and let support zones, volume trends and liquidity cues guide any tactical move. In summary: Bitcoin’s descent below US$ 100,000 is a wake-up call that the crypto market is entering a phase of caution rather than exuberance.
