{"id":47952,"date":"2025-11-26T07:32:22","date_gmt":"2025-11-26T07:32:22","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=32908"},"modified":"2025-11-26T07:32:22","modified_gmt":"2025-11-26T07:32:22","slug":"monthly-analyst-scope-whats-happening-with-bitcoin-diving-below-100k","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/featured\/monthly-analyst-scope-whats-happening-with-bitcoin-diving-below-100k\/","title":{"rendered":"Monthly Analyst Scope: What’s Happening With Bitcoin Diving Below $100K?"},"content":{"rendered":"
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Bitcoin has slipped back under the key $100,000 level after setting a new all-time high near $126,000 earlier this year. The drop triggered one of the biggest liquidation cascades of the cycle, wiping out more than $1 billion in leveraged long positions in a matter of hours. Sentiment quickly flipped from greed to extreme fear, even though the news backdrop looked supportive: rate cuts, the end of quantitative tightening, fresh crypto legislation, and a growing ETF pipeline.<\/p>\n\n\n\n

The result? A divided market. Some traders think the cycle top is already behind us, while others believe forced selling has created an opportunity. So is this the start of a long downturn, or just a harsh reset within a bigger, liquidity-driven bull cycle? Let\u2019s break it down.<\/p>\n\n\n\n

Why Did Bitcoin Drop?<\/h2>\n\n\n\n

1. Hidden Leverage Finally Burst<\/h3>\n\n\n\n

Bitcoin\u2019s run to new highs attracted massive margin trading across futures markets. When the price stopped climbing, these leveraged positions became unstable. As Bitcoin slipped from $120K toward $100K, automatic liquidations kicked in, each one forcing more selling and creating a loop that accelerated the crash.<\/p>\n\n\n\n

2. Money Rotated Into AI And Semiconductors<\/h3>\n\n\n\n

Global capital shifted into stronger themes, notably AI and semiconductor stocks<\/a>, boosted by improving trade talks and strong earnings. These trades looked more compelling than speculative assets like crypto.<\/p>\n\n\n\n

At the same time, crypto markets showed signs of exhaustion. Good news produced weaker reactions, while bad news hit harder. It’s a classic late-stage behaviour when buyers start to tire.<\/p>\n\n\n\n

3. Macro Signals Haven\u2019t Fully Caught Up<\/h3>\n\n\n\n

Policy is easing, but the economy hasn\u2019t followed through.<\/p>\n\n\n\n

Interest rates are coming down. Balance sheet tightening is ending.<\/a><\/p>\n\n\n\n

But activity indicators that normally pop during a recovery, especially manufacturing, remain below 50.<\/p>\n\n\n\n

Some macro analysts argue the market is in a stretched cycle: conditions improving ‘on paper,’ but not yet firing the growth engines that usually boost risk appetite. In this view, the liquidity wave that typically drives post-halving rallies has been delayed, not cancelled.<\/p>\n\n\n\n

Who Is Selling This Time?<\/h2>\n\n\n\n

1. Institutions Taking Profit Through ETFs<\/h3>\n\n\n\n

After months of steady inflows, spot Bitcoin ETFs suddenly flipped to net outflows as large holders redeemed shares near the highs.<\/p>\n\n\n\n

2. Long-Term Holders Moving Coins To Exchanges<\/h3>\n\n\n\n

On-chain data shows dormant coins, untouched for long periods, started moving. Some early adopters and long-term holders used high prices and ETF liquidity to take profit.<\/p>\n\n\n\n

3. Miners Increasing Sales<\/h3>\n\n\n\n

With rising energy costs and uncertainty around future price levels, miners sold more newly mined Bitcoin, especially after key price supports broke.<\/p>\n\n\n\n

4. Companies Reducing Treasury Holdings<\/h3>\n\n\n\n

Some corporates that accumulated Bitcoin during earlier phases trimmed holdings to service debt or strengthen balance sheets. Amounts aren\u2019t massive, but still add supply at sensitive moments.<\/p>\n\n\n\n

5. Leverage Washout: Over $1 Billion Liquidated<\/h3>\n\n\n\n

As price broke key technical levels, margin and futures longs were forcibly closed, over $1B in long liquidations, delivering the final flush that pushed BTC below $100K.<\/p>\n\n\n\n

Stablecoin Supply Keeps Rising. Why Does That Matter?<\/h2>\n\n\n\n

Even as Bitcoin sold off, the total value of USD-pegged stablecoins climbed to record highs above $300B. Both USDT and USDC continue expanding supply.<\/p>\n\n\n\n

This is important for two reasons:<\/p>\n\n\n\n

1. Massive ‘Dry Powder’ Inside Crypto<\/h3>\n\n\n\n

A key metric, the Stablecoin Supply Ratio (SSR), is currently low. Historically, low SSRs happen near cycle bottoms, meaning there is a large pool of buying power relative to Bitcoin\u2019s size.<\/p>\n\n\n\n

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Stablecoin Supply Ratio RSI Signals Buy \ud83d\udd0d

The Stablecoin Supply Ratio (SSR) RSI is at 21, and is \u2018buy\u2019 territory. The Stablecoin Supply Ratio (SSR) measures the buying power of stablecoins relative to Bitcoin.

It\u2019s calculated by dividing Bitcoin\u2019s market cap by the market cap\u2026 pic.twitter.com\/ZXV9UE7p5y<\/a><\/p>— CryptoQuant.com (@cryptoquant_com) September 30, 2025<\/a><\/blockquote>