Bitcoin Experiences Significant Price Drop
Bitcoin experienced a major crash, with the price falling below the psychological level of $100,000 last night.
Analysis of Recent Decline
Evaluating the recent decline in Bitcoin, Singapore-based analysis firm QCP Capital examined the main reasons for the decline.
At this point, QCP analysts stated that the decline in Bitcoin was due to a stronger dollar and uncertainty about the Fed's actions, and that this decline below $100,000 also negatively affected the risk appetite.
Impact on Bitcoin ETFs and Market Sentiment
Analysts noted that this decline in risk appetite and ongoing macro pressure were also reflected in US spot Bitcoin ETFs, with ETFs recording a net outflow of approximately $1.3 billion for four consecutive days.
“This reversal in ETFs has turned one of Bitcoin's strongest tailwinds of 2025 into a near-term headwind.”
Analysts noted that weaker spot demand for Bitcoin coincided with forced deleveraging, leading to liquidations exceeding $1 billion in long positions, and that investors in the options market were also stepping up hedging activities around $100,000.
Analysts stated that the data currently points to a technical decline in Bitcoin, emphasizing that uncertainty still prevails on the FEWD front.
Federal Reserve Uncertainty and Market Expectations
The Fed's 25 basis point rate cut in October, coupled with rare opposition, has been met with a cautious stance that has pushed back expectations of a new rate cut in December.
Currently, a 25 basis point cut in December is priced in at 72.1% in the markets, while keeping it unchanged is priced in at 27.9%.
Potential for Bitcoin's Recovery
Despite all this uncertainty and increasing macro pressure, analysts stated that Bitcoin could rise again.
According to analysts, a sustained upward rally in BTC will depend on ETF outflows giving way to inflows and renewed confidence in risky assets.