Bitcoin (BTC) Price: Falls Below $100K for First Time Since June

Bitcoin's Price Drops Below $100K for the First Time Since June

Bitcoin has recently fallen below the crucial $100,000 mark for the first time since late June. This drop occurred on major exchanges, including Coinbase, Gemini, and Kraken, as part of a broader correction in the cryptocurrency market. Despite the initial plunge, Bitcoin briefly rebounded to around $101,300 shortly after hitting the low.

Significant Decline of Over 20% from Recent Record Highs

This latest decline means that Bitcoin has now dropped over 20% from its all-time high of more than $126,000, achieved just a month ago. This downward trend has been exacerbated by a series of unsuccessful recovery attempts, with prices failing to maintain levels above $110,000, leading to rapid sell-offs each time.

Market Correction and Federal Reserve's Influence on Bitcoin

Recent actions and statements from the Federal Reserve have added to the selling pressure on Bitcoin. The central bank's unexpected hawkish stance, particularly comments from Jerome Powell about the likelihood of not cutting interest rates in December, has rattled investor confidence. This shift in monetary policy expectations has made many investors wary, contributing to the current market volatility.

Broader Market Trends Show Selling Pressure Across Assets

Interestingly, Bitcoin's struggles have occurred alongside record gains in traditional markets, such as stocks and gold, until recently. However, on the day Bitcoin fell below $100,000, there was a notable sell-off across various asset classes, with the Nasdaq dropping by 2% and gold falling by 1.6%. This indicates that the current market environment is challenging for all types of investors, with assets that previously showed resilience now experiencing declines.