Bitcoin’s price tumbled below the $100,000 mark on Tuesday, triggering one of the steepest single-day declines of 2025. The world’s leading cryptocurrency fell to lows near $99,000 before rebounding slightly. At the time of writing, Bitcoin (BTC) trades around $101,700 after a 6% drop in the past 24 hours—its lowest point since June.
Bitcoin Lags Behind Major Equities
The selloff coincided with a slower week for U.S. equities. As of Tuesday’s close, the Nasdaq is up 20.9% year to date, while the S&P 500 has posted a 15.1% gain. Compared to these benchmarks, Bitcoin has significantly underperformed most risk assets. Recent ETF flow data revealed continued net outflows from U.S. spot Bitcoin ETFs into early November, contributing to bearish sentiment. According to multiple trackers, more than $1.3 billion flowed out of major funds between November 3 and 4, led by BlackRock’s IBIT.
Why Did Bitcoin Crash This Week?
Joe Consorti, Head of Growth at Horizon (Theya, YC), believes the downturn reflects a structural rotation in Bitcoin’s ownership base rather than a loss of conviction. In a recent video analysis, he described the move as “a typical bull-market correction” and noted that Bitcoin has already experienced two major drawdowns exceeding 30% this cycle. According to Consorti, current price action represents a transfer of Bitcoin’s supply from early holders to newer investors.
Bitcoin’s “Silent IPO” Narrative
Consorti’s analysis aligns with macro investor Jordi Visser’s “silent IPO” thesis, which describes Bitcoin’s current market phase as a natural reallocation of supply through ETFs, institutional custodians, and corporate treasuries. Visser argues that early investors are taking advantage of deep liquidity to diversify or exit positions, leading to sideways price action that frustrates traders but signals market maturity.
On-chain data supports this transition. Several dormant Satoshi-era wallets and miner addresses have reactivated this quarter, including notable movements involving 10,000 BTC in July and 4,000 BTC in late October. While these transactions don’t confirm immediate selling, they underline ongoing redistribution towards regulated, liquid markets.
Technical and Macro Analysis
Technically, Consorti sees Bitcoin’s decline as “digestion, not exhaustion.” The relative strength index (RSI) shows oversold conditions similar to April, just before the last bullish leg. He cautions, however, that extended time below $100,000 could indicate an ongoing distribution phase, raising the risk of a trend reversal.
Macro factors are also playing a role. The Federal Reserve cut interest rates by 25 basis points on October 29 but signaled caution about further easing in December. Chair Jerome Powell cited uncertainty within the FOMC and ongoing data disruptions from the federal government shutdown. If equity markets weaken or liquidity tightens, Bitcoin’s correlation with risk assets could amplify further volatility.
Outlook for Bitcoin Price Recovery
Visser’s framework suggests ETFs are both a stabilizing force and a volatility driver. While they provide liquidity and institutional access, rapid redemption cycles can intensify short-term drawdowns, as seen this week. Despite recent outflows, overall assets under management remain historically high across major Bitcoin ETFs.
Consorti remains cautiously optimistic: “For every seller looking to exit, there’s a new buyer entering with a long-term mindset. This phase is slow and emotionally challenging, but it builds the foundation for the next major rally.”
Whether Bitcoin’s break below $100,000 marks a final shakeout or another stage in its ongoing consolidation will depend on whether prices can reclaim and hold above key psychological levels, ETF flows stabilize, and macro conditions improve. For now, the most significant developments in the Bitcoin market may be unfolding beneath the surface rather than on daily price charts.
At the latest update, BTC trades at $102,830.
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