Why is Bitcoin Price Crashing Today? How Low Can BTC Price Go? 

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The crypto market is crashing today, with Bitcoin (BTC) Price struggling to hold key support levels despite last week’s U.S. Federal Reserve rate cut. BTC Price has dropped to around $108,000, sparking widespread concern among traders and investors. 

Analysts now warn that the Bitcoin price crash to get worse, possibly falling as low as $88,000, if market sentiment doesn’t improve soon.

Why Is Bitcoin Price Down Today?

The main trigger behind Bitcoin’s recent sell-off is the Federal Reserve’s cautious stance following its interest rate decision. While the Fed reduced rates last week and hinted at ending quantitative tightening (QT) by December, Chair Jerome Powell made it clear that another cut in December was not guaranteed.

This statement disappointed markets and instantly shifted sentiment. According to the CME FedWatch Tool, the odds of a second rate cut in December dropped from 90% to 63%, while the chances of another one in January fell to 19.5%. This sudden change led to heavy selling across risk assets, including cryptocurrencies.

In addition, the Crypto Fear and Greed Index has remained stuck in the fear zone, currently at 35, indicating persistent uncertainty. Institutional investors also seem to be losing confidence, with nearly $800 million withdrawn from Bitcoin and Ethereum ETFs last week.

Other Factors Adding Pressure

Long-Term Holders Selling: Data from Coinglass shows that long-term Bitcoin holders sold over 100,000 BTC in October, adding downward pressure on the market.

Weak October Performance: Historically known as “Uptober,” this October broke the seven-year bullish streak, with Bitcoin falling 3.7% for the month.

Global Economic Tensions: Ongoing trade disputes between the U.S. and China, coupled with uncertainty around oil prices and geopolitical risks, have driven investors toward safer assets like the dollar and gold.

How Low Can Bitcoin Drop?

According to Coinglass, Bitcoin could fall to $88,000 if it fails to stay above the $113,000 resistance level, the cost basis for short-term holders. When BTC trades below this mark, it often leads to capitulation, where short-term investors sell at a loss, triggering more downward pressure.

The $88,000 zone represents Bitcoin’s realized price, the average cost basis of active investors. Historically, this level has acted as a floor during previous corrections, suggesting it could serve as a strong support if the current trend continues.

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However, analysts also note that a sustained close above $113,000 could invalidate the bearish outlook and open the door for a recovery rally.

Bitcoin Price Prediction For November

With few macro catalysts in November and uncertainty over U.S. economic data due to a possible government shutdown, Bitcoin may continue trading sideways between $107,500 and $123,000.

Still, some analysts remain optimistic about a potential “Santa Rally” in December. The expected end of QT and another possible rate cut could boost liquidity and bring back bullish momentum in the final weeks of 2025.

For now, traders are advised to watch the $113,000 resistance and $100,000 support closely. A clear breakout or breakdown from this range will likely determine Bitcoin’s next major move.

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