Bitcoin briefly dipped below $100,000 on Tuesday for the first time since June, dropping more than 20% from its record high above $126,000 just a month ago.
The slide comes as broader markets turn lower, with stocks and gold also falling. Investors reacted to signals from the Federal Reserve suggesting a rate cut may not come this year, undercutting demand for risk assets like crypto.
Bitcoin briefly fell to the mid-$99,000s on exchanges like Coinbase and Kraken before rebounding above $101,000. The drop also marks a new low following October’s flash crash, when bitcoin fell nearly $20,000 in a single day.
“Consensus would indicate we are in what could become a bear market aligning to bitcoin’s much lauded 4-year cycle,“ said Paul Howard of trading firm Wincent. He noted that earlier demand from ETFs and digital asset treasuries has faded.
Still, some remain optimistic. Gary O’Shea of Hashdex said institutional interest remains strong and sees the long-term outlook for bitcoin as intact, despite short-term pressure.
