Bitcoin Surges Back Above $100K: What’s Driving This Week’s Market Sentiment?
- Bitcoin’s Wild Week: From Extreme Greed to Extreme Fear
- Institutional Demand Cools Off—Should You Worry?
- The Fed Factor and Risky Asset Headwinds
- Three Signs Bitcoin Could Rebound
- FAQ: Your Bitcoin Sentiment Questions Answered
Bitcoin’s rollercoaster ride continues as it reclaims the $100K threshold after a brutal October correction. This week’s extreme volatility—including a dip below $100K—has left investors grappling with fear, institutional buying slowdowns, and Fed uncertainty. But is this a healthy pullback or the start of a bear market? We break down the data, from ETF flows to miner sell pressure, and highlight key levels to watch.
Bitcoin’s Wild Week: From Extreme Greed to Extreme Fear
Just weeks after hitting an all-time high of $126K in October, Bitcoin briefly plunged to $99,960 this Wednesday—marking its first sub-$100K moment since June. The 20% correction triggered a seismic shift in sentiment: The Crypto Fear & Greed Index nosedived to 21 ("extreme fear"), a stark contrast to October’s "extreme greed" reading of 74. "This is classic profit-taking after a parabolic move," notes Matt Hougan of Bitwise, comparing it to early Facebook and Google IPO cycles. Glassnode data reveals fragile demand, with Leveraged long positions taking the brunt of the sell-off.
Institutional Demand Cools Off—Should You Worry?
Charles Edwards of Capriole Investments dropped a bombshell: Institutional bitcoin purchases have fallen below daily miner production for the first time in 7 months. The numbers paint a grim picture—BlackRock’s iShares Bitcoin Trust inflows cratered from 10K BTC/week to just 1K BTC, while MicroStrategy’s October buys (778 BTC) were 78% lower than September’s. "This isn’t necessarily bearish," argues Hougan. "It’s maturation—like when early tech investors cash out post-IPO."
The Fed Factor and Risky Asset Headwinds
Jerome Powell didn’t help matters. The Fed Chair’s hint that December rate cuts aren’t guaranteed sent shockwaves through crypto and equities alike. "When Powell speaks, altcoins listen," quipped a BTCC trader. Indeed, Bitcoin’s correlation with the S&P 500 has rebounded to 0.6—its highest since Q2 2025. With real yields climbing, risk appetite is fading fast.
Three Signs Bitcoin Could Rebound
1.The $100K level has acted as both resistance and support since June.
2.Even reduced inflows still outpace 2024’s averages.
3.Hash ribbons suggest miners are nearing surrender—a classic bottom signal.
"Watch $112K like a hawk," advises a BTCC analyst. "That’s the level where institutions reloaded in August." CoinMarketCap data shows spot volumes spiking at this zone.
FAQ: Your Bitcoin Sentiment Questions Answered
Why did Bitcoin drop below $100K?
Profit-taking after ATHs, slowing institutional demand, and Powell’s hawkish tone created a perfect storm. The $99,960 wick was likely stop-loss cascades.
Is this a bear market?
Not necessarily. Corrections of 20-30% are normal in bull markets. The key is holding $100K and seeing ETF flows rebound.
What’s the single biggest metric to watch?
ETF inflows. If BlackRock’s IBIT can sustain 2K+ BTC/week again, it’s game on.
