TLDR
Bitcoin fell below $100,000 for the third time in November 2025, with the crypto market experiencing over $1 billion in liquidations in 24 hours
The Federal Reserve’s diminishing chances of a December rate cut (currently 52.1% probability) is driving the market downturn
Crypto-linked stocks suffered steep losses, with mining companies like Bitdeer dropping 19% and Bitfarms falling 13%
The recent government shutdown created a fiscal surplus that dried up market liquidity, though analysts expect this to reverse soon
Total crypto market cap dropped $92 billion in 24 hours, falling to $3.29 trillion as bearish sentiment increased
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Bitcoin has fallen below the $100,000 mark for the third time this month. The drop occurred during U.S. trading hours on Thursday, following a pattern of weakness during American market sessions.
The crypto market saw more than $1 billion in liquidations over the past 24 hours. Bitcoin briefly reached $104,000 overnight before reversing course in early U.S. trading hours. The price decline extended to the broader cryptocurrency market, with total market capitalization dropping by $92 billion.
The Federal Reserve’s stance on interest rates appears to be the main driver of the current downturn. CME FedWatch data shows a 52.1% chance of a 25 basis point rate cut in December and a 47.9% chance that rates will remain unchanged. These odds represent cooling expectations compared to earlier forecasts.
The Fed previously announced a 25 basis point interest rate cut in October. However, that reduction failed to provide sustained support for cryptocurrency prices. Traditional risk assets also experienced declines, with the Nasdaq falling 2% and the S&P 500 dropping 1.3%.
Crypto Stocks Face Heavy Losses
Cryptocurrency-linked equities experienced particularly severe drops. Mining companies with AI infrastructure and data center exposure were hit hardest. Bitdeer plunged 19% while Bitfarms dropped 13%.
Cipher Mining and IREN both lost over 10% of their value. Other crypto-focused companies including Galaxy, Bullish, Gemini, and Robinhood all declined between 7% and 8%. The selling pressure reflected broader concerns about the crypto sector’s near-term outlook.
Paul Howard, senior director at trading firm Wincent, stated that crypto is now more closely linked to macroeconomics than at any time in the past. He expects Bitcoin to remain muted near current levels for the rest of the year. With six weeks left in 2025, Howard believes the all-time highs for the year have already been reached.
Financial institutions have also reduced their cryptocurrency holdings through ETF vehicles. These outflows have contributed to price corrections across the market. ETFs have played an important role in the current market cycle, making institutional flows particularly impactful.
Government Shutdown Impact on Liquidity
The recent government shutdown affected market liquidity in unexpected ways. The federal government ran a $198 billion fiscal surplus in September. October data, expected to show an even larger surplus due to the month-long shutdown, will be released soon.
Market analyst Mel Mattison described the period as one of the driest for fiscal liquidity in months or years. The shutdown temporarily narrowed or reversed government deficits, removing liquidity from markets. This created downward pressure on risk assets including cryptocurrencies.
Mattison expects this situation to reverse in the coming quarters. He predicts the Trump administration will release substantial fiscal support. The return of government spending should restore liquidity to markets, potentially supporting upward price movement.
Bitcoin currently trades at $99,228 after breaking below the $100,000 level. Technical indicators show growing bearish momentum. The RSI suggests reduced ability for Bitcoin to stage a quick rebound.
If selling pressure continues, Bitcoin could test support at $95,000 or even $90,000. The total crypto market cap sits at $3.29 trillion, just below the $3.31 trillion support level. A sustained defense of this zone may be necessary for market stability.
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