Bitcoin Plunges Below $100K — Is This the Start of a Crypto Winter or Just a Reset?
2025.11.05
In early November, the crypto market faced a sharp correction. Echobit Market Data shows that Bitcoin (BTC) fell below $100,000, while Ethereum (ETH) dropped under $3,100. The Crypto Fear & Greed Index has fallen to 23, signaling extreme fear. Altcoins suffered even more, with trading volume and liquidity shrinking rapidly.
1. Confidence Shaken: Internal and External Pressures
Within the crypto ecosystem, a series of security shocks hit sentiment:
- DeFi project Balancer was hacked, losing $116 million.
- Stream Finance collapsed, reporting $93 million in losses.
On the macro side, the downturn isn’t isolated to crypto. Global equity markets in Japan and the U.S. are also declining, while ETF funds continue to record net outflows — a clear sign of weakening risk appetite.
2. Long-Term Holders Start to Move
On-chain data reveals that long-term holders (LTHs) have sold around 405,000 BTC over the past 30 days, representing about 2% of total supply. Profit-taking is emerging, testing the market’s long-term conviction.
3. Battle Between Bulls and Bears: Key Levels to Watch
According to glassnode, Bitcoin is struggling above its short-term holder cost basis (~$113K) — a critical zone of market tension. Failure to reclaim this level could trigger a deeper pullback toward the realized price for active investors (~$88K).
Meanwhile, CryptoQuant CEO Ki Young Ju notes that the average Bitcoin cost basis is around $55.9K, meaning holders still have roughly 93% unrealized profit. Liquidity remains strong on-chain, but weak demand is preventing further upside momentum. 10x Research CEO Markus Thielen adds that if Bitcoin drops below $107,000 (UTC+8), it could retest $100,000 (UTC+8) as a key support area.
4. Echobit’s View: Short-Term Pressure, Long-Term Resilience
The current fear is driven by macro liquidity tightening and a wave of negative events. Yet, on-chain activity and capital flows remain steady for major assets. This may be a healthy correction, flushing out leverage and resetting overheated sentiment.
Echobit believes: Volatility creates opportunity. In times of fear, patient observers may find the early signals of the next market cycle.