Bitcoin Falls Below $100,000 Amid Market Selloff, But Long-Term Outlook Remains Strong

Bitcoin (BTC) briefly dipped below the $100,000 mark on Tuesday across major exchanges like Coinbase, Gemini, and Kraken — its weakest level since late June. The world’s largest cryptocurrency quickly rebounded to around $101,300, yet it remains down over 20% from its record high above $126,000 reached just a month ago. The drop also marks a new low following the massive crypto flash crash on October 10, when Bitcoin plunged from $120,000 to $103,000 in one of the largest liquidation events in crypto history.

Since then, attempts at recovery have faltered as price bounces above $110,000 were met with rapid selloffs. Market analysts point to the U.S. Federal Reserve’s unexpected hawkish stance last week as a key factor behind the current correction. Fed Chair Jerome Powell’s signal that an additional rate cut in December is unlikely has weighed heavily on risk assets, including cryptocurrencies.

Adding to the bearish sentiment, long-term Bitcoin holders are reportedly selling off their holdings as demand from ETF investors and digital asset treasuries (DATs) cools. Paul Howard, director at crypto trading firm Wincent, noted that the market could slip into a bear cycle aligned with Bitcoin’s historic four-year pattern. However, he added that holding above $100,000 may help prevent deeper selloffs.

Despite the short-term turbulence, experts remain optimistic about Bitcoin’s long-term prospects. Gary O’Shea, head of global market insights at Hashdex, emphasized that macroeconomic pressures — from interest rate uncertainty to market valuations — are driving temporary weakness but not diminishing Bitcoin’s investment appeal. He maintains that institutional adoption continues to accelerate, positioning BTC for potential new highs once market conditions stabilize.