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Bitcoin price tumbled close to $98,000 today, marking the third time this month, leaving traders on edge as over $700 million in long positions get wiped out. Once hailed as a bullish month, November is turning red fast, with Bitcoin already down more than 10%.
So, what exactly triggered this sudden crash, and could Bitcoin fall even lower from here?
Reason Behind the Bitcoin Price Drop
Despite the U.S. government reopening after a 43-day shutdown, the broader financial market is still struggling. And here is the key reasons why bitcoin price is still dropping today.
Crypto-Related Stocks Plunge Hard
One of the main reasons behind today’s Bitcoin drop is the sharp plunge in crypto-related stocks, which dragged down the entire market.
Shares of major crypto firms tumbled, Cipher Mining dropped 14.4%, Riot Platforms and Hut 8 fell 13%, while MARA Holdings and Bitmine Immersion slid over 10%. Even giants like Coinbase and MicroStrategy saw 7% declines.
The sell-off came alongside a broader tech market slump, with the Nasdaq down by 2%, and the S&P 500 has dropped 1.3%.
Sentiment Weakening as Fed Rate Cut Hopes Fade
Another key reason behind Bitcoin’s drop is fading hopes for a December Fed rate cut. Recent comments from Fed officials have dampened easing expectations, pushing investors toward a risk-off stance. This shift has hit speculative assets like crypto the hardest, driving fear among traders.
According to Santiment, social sentiment has turned sharply negative, while the Crypto Fear & Greed Index plunged to 15, its lowest in seven months, showing extreme fear in the market.
Institutional Selling and ETF Outflows
Adding even more pressure to Bitcoin’s decline is the wave of large-scale selling by institutional investors. Reports suggest that BlackRock, Binance, and Wintermute have offloaded more than $1 billion worth of Bitcoin, triggering a quick 5% price drop within minutes.
At the same time, Bitcoin ETFs are seeing heavy outflows. On November 12, funds recorded around $278 million in withdrawals, adding to more than $1 billion in outflows so far this month. This shows that big investors are stepping back, signaling weak institutional demand.
What’s Next for Bitcoin Price?
After touching a record high above $126,000 earlier this year, Bitcoin has faced a strong correction and is now hovering near the key $98,000 mark.
The Relative Strength Index (RSI) has dropped to around 33, signaling that Bitcoin is entering the oversold zone, a sign of steady accumulation despite the dip. If Bitcoin can stay above $98,000, analysts believe a short-term rebound toward $107,000 could follow.
However, if it slips below this crucial level, the market might see a deeper pullback, possibly heading toward $90,000.