The cryptocurrency Bitcoin fell below the $100,000 mark for the first time since spring 2025.
On Tuesday, Bitcoin fell to around $99,954 on a number of crypto exchanges before partially recovering to above $101,000. The last time the cryptocurrency traded below six figures was in May.
Since setting a new record high above $126,000 in early October, Bitcoin has already fallen by more than 20%.
What is happening is the result of a number of circumstances.
There are now increasing outflows from exchange-traded funds (ETFs) with exposure to Bitcoin: since October 29, there have been outflows of about $1.3 billion from spot Bitcoin funds.
In addition, there are macroeconomic factors, including growing uncertainty surrounding the actions of the US Federal Reserve (Fed) and expectations regarding interest rates.
The cryptocurrency market is currently facing a phase of increased volatility. Many investors and analysts are wondering whether a local correction point has been reached or whether the decline will continue. Some forecasts consider the possibility of a decline to the $75,000 range in the absence of liquidity inflows.
