Why Is Bitcoin Crashing? $100K Breach, $19B Liquidations & Fed Fear Explained
Why Is Bitcoin Crashing: The crypto market alarm bells are ringing. Bitcoin (BTC) recently plunged below the $105,000 mark down some 18 % from its early-October peak above $126,000. Analysts are now warning that the flagship cryptocurrency may be edging into bear-market territory, raising red flags for investors across the digital-asset universe.
Here’s a breakdown of what happened, why it matters, and what traders should keep an eye on.
1. A Historic Liquidation Event
On October 10–11 a perfect storm erupted: leveraged long positions across crypto quickly inverted, triggering a cascade of margin calls and forced selling. Estimates show more than $19 billion of crypto positions were liquidated in 24 hours during that crash. The result: Bitcoin fell through key support lines, momentum worsened and sentiment flipped from greed to fear.
Charts show BTC breaking below major horizontal support around $106,500, while technical indicators like MACD and RSI plunged.
2. U.S. Fed Messaging, Dollar Strength & Macro Stress
Macro headwinds also weighed heavily. Despite a rate cut, comments from Federal Reserve Chair Jerome Powell emphasising that further cuts aren’t guaranteed sparked renewed risk-off sentiment. Meanwhile, the U.S. dollar firmed, bond yields rose, and investors treated Bitcoin less like “digital gold” and more like a high-beta risk asset.
3. Institutional Demand Weakens
Institutional buying often signals long-term conviction but lately it’s gone missing. Net Bitcoin purchases by institutions have dipped below new daily mining issuance for the first time in seven months. This lack of fresh capital means once-supportive walls around BTC are thinning, leaving it vulnerable to renewed downside.
4. Altcoin Fallout & Widening Weakness
Bitcoin’s slump isn’t isolated. Major altcoins like Ethereum (ETH), Solana (SOL) and XRP are also being hit hard some down 5–10 % in a day. As capital shifts away from riskier tokens, Bitcoin dominance has risen another warning sign of alt-market collapse.
5. What This Means for Investors
Bitcoin holding above roughly $113,000 remains key. If it closes and holds above that, a rebound is possible; if it breaks below near-term support zones (~ $100,000 or lower), deeper downside (towards ~$88,000) may play out.
Experts suggest:
- Treat Bitcoin like a risk asset, not a safe haven
- Avoid excessive leverage, especially in thinner weekend markets
- Maintain diversification (e.g., mix with gold, fixed income)
- Have an exit or risk-management plan if sentiment worsens
6. Outlook: Rebound or Reset?
A recovery is possible if macro conditions ease, institutional flows return and buying triggers emerge. But as of early November 2025, the trend is decidedly bearish, and many see the market undergoing a structural reset rather than just a correction.
For now, the message is clear: unless fresh narrative fuel arrives (e.g., regulatory clarity, ETF launches, big institutional flows), Bitcoin remains on shaky ground.
ALSO READ – Crypto Market Crashes: Bitcoin Falls 4%, Over $1.1 Billion in Liquidations Rock the Market
