NEW YORK — November 4, 2025 — Bitcoin’s price plunged below $100,000 on Tuesday, its lowest level in nearly six months, as investors pulled billions from spot crypto exchange-traded funds (ETFs) and risk sentiment across digital assets turned sharply negative.
Bitcoin Declines Over 5% Amid Market Correction
The world’s largest cryptocurrency fell more than 5%, briefly dipping under the key $100,000 threshold for the first time since May. The decline extends a three-week slide that began after the so-called “Crypto Black Friday” selloff in mid-October, marking Bitcoin’s first red October since 2018.
At its lowest point, Bitcoin traded nearly 20% below its record high of $126,000 reached in early October. Analysts described the pullback as a “mid-cycle correction” rather than a full downturn but warned that market sentiment remains fragile heading into November.
Fear Returns as Sentiment Turns Cautious
Investor sentiment has deteriorated sharply. The Crypto Fear and Greed Index shifted from “neutral” last week to “fear” territory, according to CoinMarketCap, reflecting growing caution among traders.
“Markets are resetting after months of overexuberance,” said Ethan Liu, senior strategist at Digital Asset Research. “Many traders are waiting for stronger fundamentals before stepping back in.”
ETF Outflows Signal Weak Institutional Confidence
Data from SoSoValue shows that major spot Bitcoin ETFs — including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC) — collectively saw $1.3 billion in outflows since October 29.
Spot Ether ETFs experienced an additional $500 million in withdrawals over the same period, underscoring a broader exodus from digital asset funds. Analysts say the trend reflects profit-taking and renewed caution among institutional investors following months of inflows.
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Bitcoin-Linked Stocks and Altcoins Decline
The price slump rippled across crypto-related equities. Shares of MicroStrategy (MSTR), Coinbase Global (COIN), and Robinhood (HOOD) each fell more than 6%, extending their losses after market close.
Meanwhile, major altcoins posted deeper declines. Ethereum (ETH) and Solana (SOL) both dropped over 8%, underperforming Bitcoin as liquidity thinned and short-term traders exited positions.
Market Analysts Predict Temporary Weakness
Analysts remain divided on whether Bitcoin’s slide represents a healthy reset or a signal of deeper weakness. Some suggest the move could attract fresh buyers if prices stabilize around major support levels near $95,000 to $98,000.
“Corrections like this are a natural part of the crypto cycle,” said Marta Rivera, analyst at CryptoQuant. “While the ETF outflows add pressure, we’re not seeing panic selling. Many long-term holders are simply taking profits.”
MicroStrategy Adds to Holdings Despite Price Dip
Despite the downturn, MicroStrategy, led by Bitcoin advocate Michael Saylor, announced it had acquired 397 BTC between October 27 and November 2 at an average purchase price of $114,771 per coin. The company now holds over 18,000 BTC, reaffirming its bullish long-term view.
Saylor described the acquisition as “a strategic accumulation” aligned with Bitcoin’s long-term potential, calling recent volatility “a momentary shakeout before the next upward leg.”
Outlook: Investors Await Clarity and Recovery
Bitcoin’s short-term trajectory depends heavily on whether ETF outflows continue and if macroeconomic sentiment improves. Analysts note that U.S. Treasury yields, inflation expectations, and regulatory developments could all influence crypto risk appetite in the weeks ahead.
“Bitcoin’s resilience has always been tested during moments like this,” said Clara Park, chief analyst at Lunar Investments. “If it holds above $95,000 and ETF outflows stabilize, we could see recovery momentum heading into year-end.”
Still, traders remain cautious as volatility remains elevated and the crypto market continues to absorb the aftershocks of October’s selloff.
