Bitcoin plunged below the $100,000 mark this week for the first time since late June, capping a brutal sell-off that erased approximately $300 billion from the total cryptocurrency market capitalisation and pushing the asset into bear market territory with a more than 20% decline from its October peak. Trading as low as $96,794 on Tuesday before a partial rebound to around $103,000 by Thursday, the flagship cryptocurrency has shed 6.2% week-to-date, on track for its worst performance since early March amid waning risk appetite and persistent outflows from U.S. spot Bitcoin ETFs.

The downturn represents a stunning reversal from early October, when frenzied leveraged buying propelled Bitcoin to a record $126,251. A mid-month cascade of $19 billion in liquidations shattered that momentum, leaving open interest in Bitcoin futures down over $25 billion from its peak and long-term holders offloading an estimated $45 billion in holdings. Unlike technology stocks, which have seen dip-buyers push the Nasdaq 100 within 2% of its recent high, cryptocurrency markets have failed to attract similar conviction, with Bitcoin's downside correlation to risk assets remaining stubbornly intact.

Bearish signals are mounting: Bitcoin has slipped below its 365-day moving average near $102,000—a level that held as ultimate support throughout the current bull cycle but preceded the 2021-2022 bear market when breached. Galaxy Digital slashed its year-end price target to $120,000 from $185,000, citing the leverage wipeout, while six consecutive days of ETF outflows totalling over $2 billion reflect institutional caution amid funding stress and policy uncertainty exacerbated by the ongoing U.S. government shutdown.

Also Read: Bitcoin Holds Steady at $110,000 Amid Global Economic Uncertainty

As November—historically Bitcoin's strongest month with average gains of 42%—unfolds under a cloud of fear, analysts warn of further peril if key supports fail. "A failure to cross back above the 365-day MA quickly could trigger a much larger correction," noted CryptoQuant, while SkyBridge Capital's Anthony Scaramucci likened leverage to "a spear coming out of the steering wheel" on icy roads. With the broader market nursing wounds from October's shock, the path to recovery remains fraught, though some see the purge of excess speculation as a necessary reset for sustainable advances ahead.

Also Read: Bitcoin Holds Steady at $110,000 Amid Global Economic Uncertainty