Bitcoin Falls Below $100,000 Amid Market Turmoil

NEW YORK, NY — Bitcoin‘s recent dip below $100,000 has unsettled investors, raising concerns about the sustainability of the rally seen earlier this year. The cryptocurrency fell below $95,000 on Friday, erasing nearly all its gains achieved in 2025.

Bitcoin reached an all-time high of approximately $126,000 on October 6 but has since lost about 25% of its value. As of Friday, it was trading at $95,049.

Industry analysts attribute the decline to a two-stage downturn, starting with a sell-off driven by macroeconomic factors, followed by forced liquidations. Alessio Quaglini, CEO of Hex Trust, emphasized that the sell-off began after renewed tensions between the U.S. and China triggered panic across various risk assets.

Following the October 10 sell-off, a “liquidation cascade” wiped out billions in leveraged positions, according to Quaglini. He stated, “This is a liquidity reset, not a loss of belief in the asset.”

Other cryptocurrencies have also faced challenges, with ether experiencing a drop of over 35% from its peak of $4,954 in August.

Despite the recent turmoil, some investors maintain that Bitcoin still serves as a hedge against issues like inflation and currency devaluation. However, experts caution that the market’s current environment, including fears of an impending end to the four-year cycle and tightening monetary conditions, is impacting Bitcoin’s performance.

Those looking at Bitcoin ETFs have seen movement stall, with significant institutional inflows decreasing substantially since initial approvals. Tim Sun, a senior researcher at HashKey, commented on the shift, indicating that the landscape has changed, and the capital that once flowed in is now exiting.

Many experts believe further declines could be on the horizon. “We have to be honest: this correction may not be finished,” Quaglini stated, noting that the market could retest values in the low $70,000 range.

Conversely, some market participants argue this phase is distinct from previous crises, lacking the systemic failures of 2022. “Once conditions stabilize, we still expect Bitcoin to make new highs over a 12 to 18-month horizon,” Quaglini added.

In the face of volatility, investors like Hunter Horsley, CEO of Bitwise, see current prices as an appealing entry point for strategic investors. “The setup is quite constructive,” he noted, as Bitwise observes an increase in customer investments during the past quarter.