Bitcoin Big Dump Analysis: Three Major Reasons Why BTC Price Fell Below $100,000

On November 4, 2025, Bitcoin (BTC) experienced a big dump, falling below the key psychological threshold of $100,000 for the first time since June, triggering a large-scale sell-off across the entire Marketplace. Due to macroeconomic uncertainty, ETF fund outflows, and high leverage close positions, market panic once again dominated trading sentiment. This article analyzes the core reasons behind Bitcoin’s price decline and explores potential support and risk zones ahead.

Bitcoin Breaks Key Psychological Level: Market Cap Evaporates Over $30 Billion

On November 4, Beijing time, Bitcoin’s price briefly hit an intraday low of $99,954, marking a new low since June. Although it temporarily rebounded to $100,269, the daily fall still reached 6%. This round of big dump not only broke through the widely watched $100,000 psychological barrier but also caused a chain reaction across the network—cryptocurrency total Market Cap evaporated by 6.4% within 24 hours, exceeding $300 billion.

Analysts point out that over the past few months, Bitcoin has long held above $100,000, becoming a “anchor price” for market confidence. Breaking this level indicates a shift in sentiment from “greed” to “fear,” triggering chain liquidation effects.

Reason for the Fall One: Deteriorating Macroeconomics and Rising Safe-Haven Sentiment

The primary cause of this big dump is the sudden worsening of macroeconomic conditions. The US government is once again facing government shutdown risk, coupled with new tariff threats and Federal Reserve (FED) pause rate cut expectations, leading investors to reduce interest in high-risk assets.

Against this backdrop, capital flows into the US dollar and Treasury bonds, traditional safe assets, while cryptocurrencies like Bitcoin and Ethereum are heavily dumped.

This situation is very similar to the macro environment during the 2022 crypto winter—when risk appetite shrinks, the crypto market often bears the brunt.

Reason for the Fall Two: ETF Fund Outflows and Market Liquidity Deterioration

According to the latest data, Bitcoin and Ethereum ETF products have experienced net outflows for 5 consecutive days, indicating institutional investors are reducing their crypto market exposure. ETF (Exchange-Traded Fund) fund flow is a barometer of institutional sentiment. Continuous negative inflows often mean capital withdrawal and decreased liquidity, further intensifying downward pressure on prices.

(Source: CMC)

Meanwhile, global leverage close positions surged. In the past 24 hours, the total liquidation amount in the crypto market reached $1.4 billion, with long positions liquidated up to $1 billion, showing that the market was overly optimistic earlier, and leverage became the main “fuel” for the decline.

Reason for the Fall Three: Technical Breakdown of Key Support Zones

From a technical perspective, $100,000 has been an important support zone over the past few months. This level is not only a psychological barrier but also a liquidity concentration area. When prices break below this, algorithmic trading and stop-loss orders from institutions are triggered, leading to a short-term waterfall decline.

Currently, the next support zone to watch is around $98,000, which combines high liquidity and historical support significance. If prices cannot stabilize, a deeper correction may occur.

US Dollar Rebound Weakens Crypto Asset Appeal

Since the Federal Reserve announced rate cuts in September, the US dollar index (DXY) has recently rebounded slightly, exerting pressure on dollar-denominated crypto assets.

A strong dollar often correlates with a weak Bitcoin cycle because global investors tend to flow back into dollar assets, reducing Bitcoin’s short-term appeal as a “store of value.”

Analysts note that if the dollar continues to rise and inflation does not significantly decline, the FED will maintain tightening policies, further suppressing crypto market fund inflows.

Investor Sentiment and Short-term Outlook

Market sentiment indicators show that the fear and greed index has fallen into the “fear zone.”

Although short-term volatility is intense, some analysts believe that the current decline may be a “healthy pullback,” helping to clear excessive leverage and lay the groundwork for subsequent rebounds.

In the long term, if the US advances its “Bitcoin national reserve” plan and major ETF fund inflows resume, BTC could still recover an upward trend. However, in the short term, investors should closely monitor the price performance in the $98,000–$100,000 range to assess whether the market stabilizes.

Conclusion

Bitcoin breaking below $100,000 is not just a price pullback but a stress test of market confidence.

Macroeconomic risks, ETF fund outflows, and leverage close positions jointly drove this big dump, but from a long-term perspective, Bitcoin’s fundamentals—scarcity, global acceptance, and sovereign reserve potential—remain solid.

The current volatility may be a necessary stage to accumulate energy for the next bull run.