Bitcoin has dropped below $95,000, down 8% in a single day and over 24% from its all-time high in October. Altcoins have also taken a sharp hit and the global crypto market cap has fallen to $3.3 trillion, down about 6% in the past 24 hours.
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.
According to Cryptoquant analysts , 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 holders across all age cohorts are selling at the same time. Analysts note that 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. Although markets may stabilize as liquidity returns in the coming weeks, but the near-term pressure still remains influenced by U.S. market dynamics.
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.
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.
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.
