Bitcoin has plunged further below the US$100,000 (RM412,900) mark, weighed down by renewed risk aversion and a selloff in technology stocks that has unsettled Wall Street.
The cryptocurrency dropped as much as 3.9% to US$97,956, extending a downturn that has erased more than US$450 billion in market value since early October. Traditional sources of support, including large investment funds, ETF allocators, and corporate treasuries, have pulled back, removing a key pillar from this year’s rally and intensifying market vulnerability.
Analysts at 10x Research say the crypto market has officially entered a bear phase. Citing weaker ETF inflows, ongoing selling by long-term holders, and limited participation from retail investors, the firm said its models first flagged the shift in mid-October and now point to deteriorating underlying sentiment. The next significant support level is around US$93,000.
“Bitcoin was already under pressure from heavy spot selling and corporate hedging, with traders largely avoiding altcoins,” said Jake Ostrovskis, head of OTC trading at Wintermute. “When crypto-specific catalysts fade, correlations with traditional markets increase, which is driving today’s decline.”
The slump coincides with renewed volatility in global markets. A brief rally in US equities earlier this week, triggered by relief over the end of the government shutdown, has faded. With key economic reports delayed, investors are reassessing whether the Federal Reserve will cut interest rates soon, adding pressure on growth assets such as tech stocks and cryptocurrencies.
Crypto-related equities have also suffered significant losses. Shares of Strategy Inc, long seen as a retail proxy for bitcoin exposure, have tumbled in recent weeks, erasing billions in investor capital as premiums above net asset values collapsed.
Demand for downside protection has surged in derivatives markets. Data from crypto exchange Deribit shows heavy trading in put options below the US$100,000 strike, particularly around US$90,000 and US$95,000.
Although Bitcoin remains roughly 5% higher for the year and over 40% above its level during the 2024 US election, momentum has slowed considerably, and institutional participation appears to be declining. The current drawdown began in early October, when nearly US$19 billion in leveraged crypto positions were liquidated in a single day, further dampening sentiment across digital assets.
Predicting a market bottom is difficult, but 10x Research noted that previous bear markets in mid-2024 and early 2025 saw losses of 30% to 40%. Bitcoin is currently down more than 20% from its 2025 peak, with limited signs of a sustained rebound.
“There’s no longer just the scent of a bear market — Bitcoin and most crypto-linked assets are officially in one,” 10x said, pointing to the cryptocurrency remaining below its long-term moving average, a key indicator of weakening momentum.
