Bitcoin Price Drop Below £100K, Sparks Market Panic

The Bitcoin price drop has sent shockwaves through cryptocurrency markets, as the world’s most valuable digital asset plunged below $100,000 for the first time since mid-June. This dramatic decline represents a 20% fall from its record high of $126,000 achieved in early October. Indeed, the market reaction has been swift and severe, with the broader cryptocurrency ecosystem suffering substantial losses.

Over the past week, the current bitcoin price has led to a comprehensive market downturn, resulting in a 12.4% decrease. Meanwhile, other major cryptocurrencies have fared even worse, with Ethereum dropping 20.8% and Solana falling 22.2%. Furthermore, this bitcoin price drop liquidations trend has erased approximately $840 billion from the global cryptocurrency market’s total value over the last month alone, reducing it from $4.21 trillion to $3.36 trillion. Although analysts remain uncertain about the exact causes, many point to increasing outflows from spot bitcoin ETFs, which have seen around $1.3 billion withdrawn since October 29. Additionally, technical analysts suggest the bitcoin price drop before halving might continue, with potential support levels forming around $95,000.

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Bitcoin Falls Below £100K and Triggers Market Sell-Off

On Wednesday, November 5, 2025, the cryptocurrency market experienced a sharp decline as Bitcoin falls below the critical $100,000 threshold, reaching a low of $99,010.14. This marked the first time since June that Bitcoin traded below this significant psychological barrier.

The downward spiral began after Bitcoin briefly tested £100,000 for the second consecutive day. Once this support level broke, a cascade of selling pressure emerged throughout the market. Consequently, Ethereum suffered a severe 16% loss over a 48-hour period, while other major cryptocurrencies experienced even steeper declines.

What truly magnified the market impact was Bitcoin’s dominant position, controlling approximately 45-60% of total cryptocurrency market capitalisation. As Bitcoin faltered, the entire crypto ecosystem followed suit—a phenomenon consistently observed during market downturns.

Data from analytics firm CoinGlass showed that over £1.27 billion in leveraged crypto positions were liquidated earlier this week. Most liquidations involved long positions as traders betting on continued price gains faced substantial losses.

The sell-off corresponded with broader risk-aversion across global markets, as Wall Street indices declined sharply following warnings from major bank CEOs about potential market corrections. Asian markets promptly reacted, with Japan’s and South Korea’s benchmark indices each dropping around 5%.

Leverage, Liquidations and Miner Activity Accelerate the Drop

The severity of Bitcoin’s price decline was markedly amplified by a cascading wave of liquidations across cryptocurrency markets. Data from CoinGlass revealed that over £1.94 billion in leveraged futures positions were wiped out, with long traders accounting for nearly 90% of this total. The largest single liquidation was a £51.91 million BTC-USDT long position on HTX.

This massive liquidation event occurred as Bitcoin’s price swiftly moved against highly leveraged positions. Moreover, thin order books across major perpetual venues significantly magnified price swings, creating a domino effect where each forced closure pushed prices lower, triggering additional liquidations.

Simultaneously, miner behaviour shifted notably, with data showing that 51,000 BTC were deposited on exchanges since October 9. This substantial £2.14 billion transfer signalled a strategic move from holding to potential selling, possibly to cover operational costs as Bitcoin’s value declined.

Short-term holders, in particular, contributed to the selling pressure. Specifically, the 7-day Short-Term Holder Spent Output Profit Ratio fell to 0.9904, indicating most coins moved by newer market participants were being sold at a loss. This panic-driven behaviour was evidently demonstrated when 56,000 BTC were sent to exchanges following a 5.05% price drop between October 13 and 14.

Technical Levels and Market Outlook Raise Questions

Technical analysts are closely monitoring several key support levels as Bitcoin’s price continues to struggle. Initially, the £163,449.06 level at the 0.146 Fibonacci Retracement provided a bounce; however, traders fear that another test could fail. Should this critical threshold break, a cascade toward £152,899.02 and ultimately £146,783.06 appears increasingly likely.

Several market observers have identified £149,841.04-£152,899.02 as the crucial zone that must be maintained to prevent further deterioration. However, the daily chart’s bearish structure suggests Bitcoin may lose these supports unless substantial buying volume emerges.

Looking upward, Bitcoin faces significant resistance at $169,717.92, with additional barriers at $175,222.28 and $186,536.81. Breaking above these levels would be necessary for bulls to regain control of price action.

The broader technical outlook remains concerning, with Bitcoin forming a descending wedge pattern on shorter timeframes. The RSI indicator approaching oversold territory offers a glimmer of hope for potential reversal; nonetheless, fundamentals continue to deteriorate.

For November, analysts project a choppy trading range between £163,601.95 and £172,775.90. Looking further ahead, price predictions for 2025 vary dramatically – from bearish forecasts of £110,087 to optimistic projections reaching £203,810. Despite this uncertainty, most institutional forecasts cluster between £229,348.53 and £382,247.56 for the end of 2025.

Conclusion – Bitcoin Price Drop

Bitcoin’s dramatic plunge below the £100,000 threshold marks a significant turning point for cryptocurrency markets. This 20% decline from October highs certainly represents more than a mere correction, potentially signalling a shift in market sentiment. The ripple effects throughout the crypto ecosystem have been severe, with Ethereum and Solana suffering even steeper falls than Bitcoin.

Liquidation cascades undoubtedly accelerated the downward momentum. The £1.94 billion wipeout of leveraged positions, coupled with thin order books across major platforms, created a perfect storm for amplified price swings. Additionally, miner behaviour changed noticeably, as evidenced by substantial Bitcoin transfers to exchanges – a possible indication of strategic selling rather than holding.

Technical indicators now paint a cautious picture for Bitcoin’s immediate future. The formation of a descending wedge pattern, despite the RSI approaching oversold territory, suggests continued volatility lies ahead. Nevertheless, institutional forecasts for late 2025 still cluster between £229,348 and £382,247, highlighting the stark contrast between short-term uncertainty and longer-term optimism.

Ultimately, this market event serves as a sobering reminder that, despite institutional adoption and mainstream acceptance, cryptocurrency markets continue to exhibit extreme volatility. Traders and investors alike would be wise to prepare for continued turbulence as Bitcoin navigates these challenging waters.