Bitcoin Dips Below $100,000 as Crypto Market Faces Sharp Liquidation Pressure

Blogsia.eu.org: Bitcoin Dips Below $100,000 as Crypto Market Faces Sharp Liquidation Pressure

BLOGSIA.EU.ORG - Bitcoin briefly fell below the critical $100,000 mark this week, signaling a new wave of volatility across the cryptocurrency market. Alongside Bitcoin’s drop, the S&P 500 index and gold prices also declined by roughly 3% and 10% from their recent highs, reflecting broader risk aversion among investors.

According to CoinGecko data on Wednesday, Bitcoin hit an intraday low of $99,110 before slightly recovering. Overall, the world’s largest cryptocurrency has dropped around 21% from its October peak, marking one of its steepest corrections this year.

Citing Yahoo Finance (November 5, 2025), the global crypto market capitalization has fallen to $3.44 trillion, its lowest level in four months. A wave of large-scale liquidations erased more than $2 billion in digital assets, triggering heavy selling pressure for two consecutive days as leveraged positions were rapidly unwound.

The key question for investors now is not why prices are falling—but how far the decline might go.

Ryan Yoon, Senior Research Analyst at Tiger Research, predicted Bitcoin would likely hold support near $98,000, maintaining a long-term target of $200,000. Meanwhile, Tim Sun, Senior Researcher at HashKey Group, said the sell-off indicates a “major shift in market dynamics,” as investors become increasingly cautious amid rising volatility.

“Bonds are the only assets showing gains, while Bitcoin, gold, and stocks are all falling together,” Sun told Decrypt. He added that $85,000 could serve as a strong lower boundary for Bitcoin if selling pressure persists.

Analysts widely attribute the slump to the strengthening of the U.S. dollar, which typically drags down risk assets. Jiehan Chen, Senior Onboarding Analyst at Schroders, told Decrypt, “The stronger USD is the main driver behind the drop in dollar-denominated assets.”

Sun also pointed to tightening liquidity in short-term funding markets. He cited the rising use of the Fed’s repo facilities and the U.S. Treasury’s cash balance surpassing $1 trillion, suggesting that available market liquidity is shrinking rapidly.

Market anxiety has also intensified due to the looming U.S. government shutdown, which analysts expect could extend into December. Prediction platform Myriad reported that 98.7% of users believe this shutdown could become the longest in U.S. history.

Derek Lim, Head of Research at Caladan, told Decrypt that the liquidity squeeze has amplified selling pressure across the crypto market, worsening sentiment.

Despite the widespread fear, on-chain data paints a more balanced picture. Verified analysts from CryptoQuant, XWIN Research, said Bitcoin’s dip below $100,000 was largely sentiment-driven, as the Fear & Greed Index plunged to 21, indicating a market dominated by fear.

Fundamentally, Bitcoin’s network remains strong. Hash rate data shows mining activity near record highs, and more than $10.7 billion in stablecoins have flowed into Binance, potentially providing “dry powder” for investors ready to buy at lower prices.

Analytics firm Santiment echoed this view, reporting that despite the drop below $100,000, many investors continue to “buy the dip,” betting that Bitcoin’s long-term momentum will remain intact.

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