UPDATE: Bitcoin has plunged below $100,000 for the first time since May, currently trading around $95,000, marking a steep decline of nearly 9% over the past week. The cryptocurrency’s turmoil follows a dramatic crash on November 14, when it dropped to a six-month low of $94,000, highlighting a wave of panic among investors.
This sharp decline has erased almost all gains from 2025, shattering the optimism surrounding Bitcoin, which had reached an all-time high of $126,296 just over a month ago on October 6. The broader market sentiment reflects a growing risk-off mood, with investors fleeing high-risk assets as global economic uncertainty looms.
The sell-off was exacerbated by nearly $867 million in outflows from Bitcoin exchange-traded funds (ETFs) in a single day, the second-largest in history. This massive movement signals a significant drop in institutional confidence and has contributed to a cascading effect across the entire crypto market, which has seen billions wiped off its total capitalization.
Traders are feeling the impact of this volatility, with leveraged positions in the futures market being liquidated at an alarming rate. The situation is causing even long-term Bitcoin holders to reconsider their strategies as the market faces unprecedented pressure.
Bitcoin’s turbulent history serves as a reminder of its inherent volatility. Since its inception in 2009, Bitcoin has experienced explosive growth followed by steep declines, with previous cycles demonstrating that such dips are part of its nature. The cryptocurrency surged to $69,000 in 2021, only to plunge below $20,000 in 2022 amidst fears of inflation and the fallout from the FTX scandal.
The current sell-off is partly driven by a hawkish stance from the US Federal Reserve, which has crushed hopes for aggressive interest rate cuts. As inflation rises, investors are increasingly opting for safer assets, dragging Bitcoin down along with the broader stock market.
Michael Saylor, Executive Chairman of MicroStrategy, remains optimistic, stating,
“Bitcoin over the long-term would outperform both gold and the S&P 500.”
However, skepticism around Bitcoin’s status as “digital gold” is resurfacing, especially as traditional gold has surged over 50% year-to-date.
In response to the market’s choppy waters, experts recommend several strategies for Bitcoin holders. These include dollar-cost averaging—continuously investing fixed amounts—diversifying portfolios with stable assets, and setting clear exit rules to mitigate emotional decision-making.
As Bitcoin eyes potential rebounds toward $120,000 to $200,000 by year-end, investors must focus on their risk tolerance and investment horizon rather than getting swept up in the headlines.
This is a developing story, and investors are advised to stay vigilant as the market continues to react to these significant shifts. Always consult financial professionals before making investment decisions, as cryptocurrency investments carry substantial risks.
