Why Bitcoin Fell Below $95,000 Key Drivers Behind the Downturn
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1. Macro & rate-cut disappointment
One of the strongest headwinds for Bitcoin is the wider macroeconomy. With the Federal Reserve signalling that interest-rate reductions may be further away than expected, risk-assets like Bitcoin are suffering. A higher cost of capital reduces the appeal of non-yielding assets. The drop under $100,000 (and toward $95,000) reflects this “crypto market decline interest-rate impact” trend.
2. Heavy long-term-holder selling
On-chain data suggests long-term holders (whales) have been off-loading positions. One report noted that approximately $45 billion worth of Bitcoin changed hands among long-held wallets in the past month. This acceleration of profit-taking increases supply into the market just as demand cools a classic driver of price weakness.
3. Liquidity drying & leveraged markets squeezed
Bitcoin’s price slide has been exacerbated by a liquidity squeeze: thinner order-books mean large trades move the market further. Additionally, leveraged positions are being liquidated as support zones fail. The keyword “crypto liquidity crunch November 2025” aptly captures the dynamic.
4. Technical breakdowns triggering sentiment shifts
Technically, Bitcoin failed to hold above key support levels and broke under important moving averages. One analysis noted that a fall below the $100,000 mark could open the door toward $95,000 or even lower. These technical signals often trigger further selling because they erode confidence and invite algorithmic triggers.
5. Risk-off tone across markets
Bitcoin does not trade in isolation. When broader risk-assets (tech stocks, emerging-markets, etc.) wobble, crypto tends to follow. The recent weakness in equities and a strong U.S. dollar have weighed on Bitcoin’s appeal to global buyers.
What this means & what to watch
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Short-term outlook: Bitcoin is likely to remain volatile and may test levels near or below $95,000 unless macro or technical support improves.
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Signs of relief: A confirmed rate-cut signal, improved liquidity, or reduced selling from whales could reverse the trend.
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Long-term context: The fundamental case for Bitcoin remains intact (network usage, institutional interest), so this correction might be a pause rather than the end of the cycle.
FAQs
Q1: Does the drop below $95,000 mean Bitcoin is in a bear market?
Not necessarily. A drop below $95,000 signals a deeper pullback, but bear market status usually involves sustained lower highs and widespread capitulation. Many analysts view this as a consolidation phase rather than a full bear cycle.
Q2: Why did Bitcoin fall below $95,000 specifically?
It’s the convergence of macro stress (rates), long-holder profit-taking, thinner liquidity and broken technical support. These factors combined to break critical thresholds and push price toward or below $95,000.
Q3: Should I sell my Bitcoin because it’s down?
That depends on your time-horizon and risk appetite. If you believe in the long-term case for Bitcoin, this may be an entry or hold opportunity. If you prefer less volatility, you might limit exposure until stability returns.
Q4: Can Bitcoin recover from this level?
Yes. If market conditions improve such as renewed demand, institutional accumulation or positive regulatory news Bitcoin could rebound. Watch for signs that selling pressure abates and support zones hold.
Q5: What levels should I watch for a turnaround?
Key technical support is around $95,000-$90,000. A breakout above previous resistance around $110,000-$113,000 could signal a return of bullish momentum. If those levels break, further weakness toward $80,000 may unfold.
Q6: Are altcoins likely to fare worse than Bitcoin in this pullback?
Historically yes. When Bitcoin corrects, altcoins often underperform because risk-appetite wanes. If liquidity is tight and sentiment is weak, many altcoins may face sharper declines.
