Bitcoin prices fell nearly $98,000 today, marking the third time this month, leaving traders on edge as more than $700 million in long positions are wiped out. Once hailed as a bullish month, November is quickly turning red as Bitcoin is already in negative territory more than 10%.
So what exactly caused this sudden crash, and could Bitcoin fall even further from here?
Reason behind Bitcoin price drop
Despite the US government reopening after a 43-day shutdown, the broader financial market is still struggling. And here are the top reasons why the bitcoin price is still falling today.
Crypto-related stocks are plummeting
One of the main reasons behind today’s Bitcoin decline is the sharp decline in crypto-related stocks, which dragged the entire market down.
Shares of major crypto companies plummeted, Cipher Mining fell 14.4%Riot Platforms and Hut 8 fell 13%, while MARA Holdings and Bitmine Immersion fell more than 10%. Even giants like Coinbase and MicroStrategy saw a 7% drop.
The sell-off was accompanied by a broader tech market slump, with the Nasdaq down 2% and the S&P 500 down 1.3%.
Sentiment is weakening as hopes for a Fed rate cut fade
Another major reason behind Bitcoin’s decline is dwindling hopes for a Fed rate cut in December. Recent comments from Fed officials have dampened dovish expectations, pushing investors toward a risk-averse stance. This shift has hit speculative assets like crypto the hardest, increasing fear among traders.
According to Santiment, social sentiment has turned sharply negative, while the Crypto Fear & Greed Index fell to 15, the lowest in seven months, indicating extreme fear in the market.
Institutional selling and ETF outflows
Adding pressure to Bitcoin’s decline is the wave of large-scale selling by institutional investors. Reports suggest that BlackRock, Binance, and Wintermute sold more than $1 billion worth of Bitcoin, causing a rapid 5% price drop in minutes.
At the same time, Bitcoin ETFs are seeing heavy outflows. The funds were registered on November 12 approximately $278 million in withdrawals, contributing to more than $1 billion in outflows so far this month. This shows that major investors are taking a step back, indicating weak institutional demand.
What’s next for the Bitcoin price?
After reaching an all-time high above $126,000 earlier this year, Bitcoin has undergone a sharp correction and is now hovering near the key $98,000 mark.
The Relative Strength Index (RSI) has fallen to around 33This indicates that Bitcoin is entering the oversold zone, a sign of steady accumulation despite the dip. If Bitcoin can hold above $98,000, analysts believe a recovery towards $107,000 could follow in the near term.
However, if the price falls below this crucial level, the market could see a deeper pullback, possibly towards $90,000.
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