Bitcoin "pierced" the important milestone of 100,000 USD, is the market still on fire?

(Dan Tri) - Bitcoin price has fallen below the $100,000 mark, the lowest since late June, when the cryptocurrency market entered a strong correction.

Bitcoin prices plummeted to just $99,966, according to data from Binance. The world's largest cryptocurrency is now down more than 20% from its record high of over $126,000 reached just a month earlier.

Bitcoin also set a new low lower than the "crash" on October 10. This event is considered one of the largest liquidations in the history of the cryptocurrency market, when the price of bitcoin fell from more than $ 120,000 to $ 103,000 in just under 24 hours. In the following weeks, recovery efforts failed as each time the cryptocurrency surpassed the $ 110,000 mark, it was pushed back by strong selling pressure.

Bitcoin has erased gains made during a period of euphoria on Wall Street and increased institutional buying, amid investor sentiment affected by the US government shutdown and slowing economic growth.

New data released on Friday showed US manufacturing activity continued to decline for the eighth consecutive month in October, while the overall stock market lacked momentum, adding to investors' concerns.

Bitcoin price drops sharply (Photo: Binance).

Bitcoin-linked exchange-traded funds (ETFs) have seen outflows over the past month, reflecting cooling investor sentiment after a strong rally earlier this year.

One of the recent reasons for the continued decline in bitcoin prices is the unexpected "hawkish" policy of the US Federal Reserve (Fed) last week. Chairman Jerome Powell and many other Fed officials have caused investors to reduce expectations of the possibility of cutting interest rates in December.

Bitcoin's plunge coincided with a reversal in high-growth tech stocks, particularly artificial intelligence companies like Palantir and Nvidia, which have been under pressure from concerns about lofty valuations.

Paul Howard, director of crypto exchange Wincent, said the strong demand from ETFs and institutions holding digital assets during the summer has weakened significantly, with even many long-term wallets starting to sell.

"We may be entering a bear market, consistent with bitcoin's famous four-year cycle. However, if bitcoin holds above $100,000, the market may avoid panic selling and large-scale liquidations," he analyzed in the report.

Meanwhile, Mr. Gary O'Shea, Director of Global Market Research at Hashdex, sees many macro factors that are putting pressure on prices, including the possibility that the Fed may not continue to cut interest rates this year, concerns about tariffs, credit markets and high stock valuations.

However, he stressed that the long-term outlook for bitcoin remains very positive. Specifically, the current price movement of bitcoin is not a sign that long-term investment confidence in the virtual currency is weakening. He said that with the rapid increase in participation from institutional investors, bitcoin could still set a new high in the coming months.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-xuyen-thung-moc-quan-trong-100000-usd-thi-truong-co-van-do-lua-20251105121222914.htm