Why BTC price fell below $100,000 today

Bitcoin broke through the key psychological level of $100,000, engulfing the rest of the cryptocurrency market.

why? Fear is once again driving the crypto market. Traders are fleeing risky assets amid the government shutdown.

Bitcoin fell below $100,000 for the first time since July, triggering a decline in the entire cryptocurrency market. The decline came after a wave of liquidations and ETF outflows due to a deteriorating macro environment.

On Tuesday, November 4th, BTC price reached a daily low of $99,954, its lowest level in recent months. The price has since recovered to $100,269, marking a daily decline of 6% for Bitcoin. This decline caused a significant decline, reducing the market capitalization of cryptocurrencies by 6.4%, or more than $300 billion in value.

$100,000 served on an important psychological level for BTC, especially as the token held above it for several months. The last time BTC price fell below $100,000 was on June 23, when it hit a daily low of $99,705.

Why did Bitcoin collapse?

This decline came after the macro environment deteriorated and appetite for risk assets waned. The threat of new tariffs and the likely suspension of new Federal Reserve rate cuts have made crypto assets less attractive to investors.

This outlook then triggered a series of effects that culminated in consistent ETF outflows and a surge in liquidations.

As an example, Bitcoin (BTC) and Ethereum (ETH) ETFs are on track to record negative flows for five consecutive days. At the same time, 24-hour liquidation amount reached $1.4 billion on November 4th, with longs in the lead at $1 billion.

Further breakdown is possible after Bitcoin price falls below this important level. Traders will be keeping an eye on the $98,000 support level, which is the lower bound and high liquidity zone.

Meanwhile, the US dollar has rebounded slightly since the Fed cut interest rates in September.