Bitcoin experienced a major crash last night, with its price falling below the psychological level of $100,000. Singapore-based analysis firm QCP Capital has examined the main reasons behind this recent decline.
QCP analysts pointed out that the drop in Bitcoin’s price was primarily driven by a stronger US dollar and growing uncertainty about the Federal Reserve’s (Fed) future actions. The fall below $100,000 has also negatively impacted risk appetite among investors.
This weakening in risk appetite and ongoing macroeconomic pressures have been reflected in US spot Bitcoin ETFs, which have recorded net outflows of approximately $1.3 billion over four consecutive days. According to QCP Capital, “This reversal in ETFs has turned one of Bitcoin’s strongest tailwinds of 2025 into a near-term headwind.”
In addition, weaker spot demand for Bitcoin has coincided with forced deleveraging, resulting in liquidations exceeding $1 billion in long positions. Investors in the options market have also increased hedging activities around the $100,000 mark, highlighting the cautious sentiment prevailing in the market.
The data currently points to a technical decline in Bitcoin, with significant uncertainty still surrounding the Fed’s decisions. The recent 25 basis point rate cut by the Fed in October—despite rare opposition—has been met with a cautious market stance. This has delayed expectations of a new rate cut in December.
Market pricing currently reflects a 72.1% probability of a 25 basis point cut in December, while a scenario keeping rates unchanged stands at 27.9%.
Despite the prevailing uncertainty and increased macroeconomic pressures, QCP Capital analysts remain optimistic that Bitcoin could rally again. They noted that a sustained upward movement in BTC will likely depend on ETF outflows turning into inflows and a renewed investor confidence in risk assets.
*This is not investment advice.*
https://bitcoinethereumnews.com/bitcoin/whats-driving-bitcoins-price-down-is-a-rise-still-possible-analysis-firm-explains/
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