What is causing Bitcoin price to plummet? Experts reveal the real reason!
Bitcoin falls below $100,000: Worrying signals from the market and ETFs
Stronger USD drags Bitcoin down
Last night, Bitcoin fell deeply below the psychological mark of $100,000 , marking a sharp decline that left investors bewildered.
According to analysis firm QCP Capital (Singapore), the main reason lies in the rising momentum of the USD and the uncertainty about the policy of the US Federal Reserve (Fed).
QCP said risk aversion is spreading across the cryptocurrency market.
Bitcoin ETF withdraws capital strongly, more than 1 billion USD positions are liquidated
Investors' caution is also reflected in the cash flow from Bitcoin spot ETFs in the US , with 4 consecutive days of net withdrawals totaling about 1.3 billion USD. QCP commented:
“This reversal has turned one of Bitcoin’s strongest supports in 2025 into short-term resistance.”
At the same time, more than $1 billion in long positions were liquidated as spot demand weakened and the market faced forced deleveraging. In the options market, investors also increased their hedging around the $100,000 region.
Hopes for recovery depend on new capital flows and confidence
QCP believes that the current decline is mainly technical , while uncertainty from the Fed still prevails.
After the Fed cut interest rates by 25 basis points in October, expectations for another cut in December have fallen, with a 72.1% probability in the market that the Fed will continue to lower interest rates.
However, analysts believe that Bitcoin still has a chance to recover if ETF cash flows reverse to net buying and confidence in risky assets is restored.