Bitcoin Pulls Back Below $100K, Spooking the Crypto Market
The crypto market faced renewed turbulence as Bitcoin failed to hold above the $100K mark on Monday. The subsequent sell-off sent the flagship cryptocurrency to a low of $94K, leaving traders and investors cautious about the near-term outlook.
Bitcoin Struggles at Key $100K Resistance Level
Bitcoin’s inability to consolidate above $100K has sparked a 4% decline in the broader crypto market, bringing total market capitalization down to $3.4 trillion. The failure to breach this critical psychological level has dampened sentiment, not only for Bitcoin but also for smaller, more volatile altcoins.
Despite the Cryptocurrency Fear and Greed Index remaining at an “extreme greed” level of 78, it appears to lag behind the recent price movements. Bitcoin continues to face a wall of sell orders below $100K, and interest in breaking above this resistance remains unmet.
However, analysts suggest that if Bitcoin clears this hurdle, the price could surge to the $120K range, backed by robust institutional interest and a thinning resistance path.
Crypto Market Highlights
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Record-Breaking Institutional Investments
According to CoinShares, global investments in crypto funds hit an all-time high of $3.851 billion last week, extending a nine-week streak of inflows:- Bitcoin attracted $2.546 billion in investments.
- Ethereum saw a record $1.16 billion in inflows.
- XRP hit a new high with $134 million invested.
- Solana was the exception, seeing an outflow of $14 million.
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MicroStrategy’s Latest Bitcoin Purchase
MicroStrategy continues to double down on Bitcoin, purchasing an additional 21,550 BTC for $2.1 billion at an average price of $98,783. This brings the company’s total holdings to 423,650 BTC, acquired for $25.6 billion at an average price of $60,324 per coin. Founder Michael Saylor reiterated his bullish stance on Bitcoin’s long-term potential. -
Shifting Dynamics Among Bitcoin Holders
Since November 8, long-term holders have sold off 827,783 BTC (~$81.2 billion). While this sell-off was only partially offset by MicroStrategy’s acquisitions and spot ETF purchases, short-term holders absorbed the remaining volume. These newer entrants are more exposed to leveraged positions, heightening market vulnerability. -
BlackRock’s Global Outlook for Bitcoin
BlackRock has spotlighted Bitcoin in its Global Outlook 2025, highlighting its potential as a diversification tool akin to gold. The firm noted Bitcoin’s limited supply and increasing demand as critical drivers of its appeal in a diversified portfolio.
Outlook for Bitcoin
While Bitcoin’s recent pullback has unnerved the market, its long-term fundamentals remain intact. Analysts believe that breaking the $100K barrier could pave the way for a rally toward $120K, supported by institutional inflows and renewed investor confidence.
For now, all eyes are on Bitcoin’s next move, as its performance will likely dictate the broader market’s trajectory in the weeks ahead.
