Why Did The Bitcoin Price Crash Below $100,000? The Bear Market Is Here

The Bitcoin price has fallen below $100,000 for the first time in four months, wiping out nearly 6% of its value within a single ￰0￱ drop can be attributed to a strengthening US dollar, outflows from Spot Bitcoin ETFs, and massive liquidations across the crypto futures market, causing investors to question whether the long-anticipated bear market has finally arrived. Notably, Bitcoin’s correction also rippled through the entire crypto sector, where the total market capitalization fell below $3.5 trillion for the first time in ￰1￱ Price Crashes Below $100,000 Bitcoin has spent the past 30 days with a lack of clear bullish price ￰2￱ it started October with a rally to break above $126,000 for the first time, which was a new all-time high, the majority of October was highlighted by the leading cryptocurrency struggling to leave the $107,000 to $110,000 price range ￰3￱ prolonged period of sideways trading hinted at a lack of strong buying pressure, and the weakness has spilled into ￰4￱ has, in turn, caused the leading cryptocurrency to crash below $100,000 in the past 24 hours, albeit only for a short period.

A surging US dollar has become one of the biggest headwinds for Bitcoin’s recent price ￰5￱ dollar index, which tracks the dollar’s strength against a basket of major currencies, climbed above 100 for the first time since ￰6￱ move reflected growing investor preference for safer assets, especially as uncertainty around the Federal Reserve’s next interest-rate decision continues to hang over global ￰7￱ impact of this has been most visible in the crypto sector, where confidence has eroded ￰8￱ and Ethereum fell massively as traders exited leveraged positions en ￰9￱ sudden sell-off created a chain reaction of liquidations across exchanges that wiped out billions of dollars in futures positions within ￰10￱ Bitcoin’s case, its market cap dropped by as high as 5.8% in just 24 hours, falling to around $2 ￰11￱ activity has surged massively during the downturn, crossing over $100 ￰12￱ A Bear Market On The Horizon?

The crash below $100,000 opens up questions about whether the bear market has officially ￰13￱ Bitcoin price is still up 8% on a yearly basis, but the scale of recent losses alongside the rising US dollar index points to a more cautious phase ￰14￱ the time of writing, Bitcoin has already rebounded above $100,000 and is now pushing towards $102,000. The rebound means that a section of traders has seized the opportunity to accumulate more during the dip, and Bitcoin is now trading at $101,770. If the Bitcoin price slips below $100,000 again, then it opens up the possibility of an extended decline towards $90,000. On the other hand, bullish technical analysis shows that the crash caused Bitcoin to touch its 50-week moving average, a level that’s always preceded a new all-time ￰15￱ last time this support was tested was in April 2025, and what followed was a powerful rebound that sent the Bitcoin price soaring more than 50% to reach $125,000 in the months that followed.