Bitcoin Plunges Below $100K: 6% Daily Drop, 20% Down From October Peak

Bitcoin's bull run hits a major speed bump as the flagship cryptocurrency tumbles below the psychological $100,000 barrier.

The Tuesday selloff saw Bitcoin shedding over 6% in a single session—adding to a concerning 20% decline from its October highs.

Market Mechanics Unpacked

This isn't just another dip—it's a reality check for traders who thought the only direction was up. The 20% retreat from October's peak signals profit-taking has arrived with vengeance.

Meanwhile, traditional finance analysts are probably nodding smugly about crypto volatility—conveniently ignoring that their own markets have their share of drama.

Whether this proves to be a healthy correction or the start of something bigger remains unclear. But one thing's certain: in crypto, the only guarantee is that nothing's guaranteed.

Shutdown stalls market and liquidity

The U.S. government shutdown is now on track to become the longest in history. Wednesday marks day 36, passing the previous record set in early 2019.

The latest effort to pass a temporary funding measure backed by Republicans failed in the Senate for the 14th time on Tuesday.

No further votes were scheduled on Tuesday for either the GOP measure or a Democratic alternative, which includes more funding for health care and other programs. Both of the two longest shutdowns happened during Donald Trump’s presidency.

At the same time, key economic data continues to show weakness. The U.S. manufacturing sector contracted again in October, marking eight straight months of decline. The equity market is also showing signs of strain.

Investors are watching Federal Reserve Chair Jerome Powell’s cautious tone after last week’s policy meeting. Powell did not commit to a rate cut in December, leaving traders unsure about the path of monetary policy.

The shutdown also affects liquidity. The Treasury General Account, the government’s main spending account, has been frozen in place. Farrell said the extended shutdown “delays expected TGA drawdowns and stalls liquidity tailwinds that were expected to support risk assets into year-end.”

He said an end to the shutdown would likely lift crypto markets. “I’m still optimistic for year-end,” Farrell said. “For now I think this is just some volatility that we’re going to have to manage.” Fundstrat still has a year-end Bitcoin target between $150,000 and $200,000.

Stock market shows internal weakness

The broader stock market is also flashing warning signs. Josh Brown said Tuesday on CNBC that the U.S. market is already in a correction, even though the major indexes have not shown it clearly.

“We’re actually undergoing a market wide correction right now,” he said. Josh explained that the reason most investors do not feel it is because the decline has not hit the major technology names that drive the indexes.

More than 30% of S&P 500 stocks are trading more than 20% below their 52‑week highs. Meanwhile, 6.5% of the index made fresh 52‑week lows on Tuesday.

The S&P 500 fell more than 1% on the day, dragged lower by weakness in AI‑linked stocks. Brown acknowledged that the market needs to reset.

“This is what healthy bull markets do,” Josh said. “They wick that enthusiasm off the top and reset.” He said this type of correction may be necessary before any attempt at a year‑end rally.

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