The drop extended a multi-day slide triggered by shifting investor sentiment and declining demand from institutions.
The world’s largest cryptocurrency touched a low of $101,500 before stabilizing slightly above $102,000. Bitcoin is now down more than 8% from last month’s peak of nearly $112,000 and further losses could follow if confidence continues to erode.
As of press time, Bitcoin was trading at $101,900, down 2.87% for the day as bulls attempted to stabilize price in the six-figure zone.
The tone among asset managers has also shifted, with many citing uncertainty around the Federal Reserve’s next move as a reason to reduce exposure to volatile assets like crypto.
The selling was not limited to crypto markets, with financial markets across the board seeing sharp declines for the trading day.
Traders remain on edge ahead of upcoming US jobs data and new comments expected from the Federal Reserve. With inflation lingering and rates still high, risk appetite has weakened across asset classes. Crypto has not been spared, and many investors are moving to cash while volatility spikes.
A weaker-than-expected number may support arguments for rate cuts, but could also reinforce fears of a slowing economy. Earlier this week, the ADP private payrolls report showed job creation falling well short of expectations, its weakest print in over two years.
Adding to the uncertainty, leveraged long positions have fallen to their lowest levels since December. The rapid unwind of these positions suggests that even the most aggressive bulls are stepping back, at least for now.
If Bitcoin fails to hold the $100,000 line, traders expect a swift descent toward $97,000 or lower, marking a major retracement from the 2025 highs.
