Bitcoin is now trading below $100,000 for the first time since May 2025, following an avalanche of selling due to massive outflows from Bitcoin exchange-traded funds (ETFs). Approximately $1.3 billion in ETF outflows has occurred since late October, suggesting waning investor demand and contributing to Bitcoin’s decline from a record high of more than $126,000 in early October. This selloff also means related assets, like Ethereum, are down, and has ensnared major companies tied to cryptocurrency — including MicroStrategy, Coinbase, and Robinhood — whose stocks have all taken a beating.
Today’s fall comes after a so-called “Black Friday” in the crypto market, which traders experienced in mid-October, leading to Bitcoin suffering its first monthly loss since 2018. The selloff has heightened market fear, causing the crypto fear and greed index to shift from neutral territory to fearful. Observers view this as business as usual in the current state of the cryptocurrency market, offering few clues as to whether the bleeding will continue or flush out buyers.
The outflows are largely coming from physical Bitcoin ETFs, including BlackRock’s iShares, Fidelity Wise Bitcoin Fund and Grayscale Bitcoin Trust. Ethereum ETFs have also experienced substantial outflows , amounting to nearly $500 million over the same timeframe. This is in addition to greater risk-off behaviour in global markets, influenced by persisting macroeconomic risks and geopolitical elements, such as the ongoing US government shutdown.
Although the market as a whole is declining, there are some signs that things are looking up, such as large investors purchasing a significant amount of Bitcoin at prices above $110,000. However, people in the market are still being cautious, and technical analyses indicate that Bitcoin could drop even further, possibly testing lows between $88,000 and $95,000.
In summary, Bitcoin’s drop below $100,000 is driven by substantial ETF outflows and a risk-off market sentiment, reflecting a broader retreat from riskier assets across the financial landscape. The coming weeks will be crucial to determine whether this trend reverses or leads to a deeper correction in the cryptocurrency market.