Morning Minute: Bitcoin Breaks Below $100K for First Time Since May
News Summary
Bitcoin briefly dipped below $100,000 for the first time since May, leading to approximately $2 billion in long liquidations across exchanges. This ~6% drop in BTC triggered a broader market downturn, with Ethereum and Solana falling 10-15% and many altcoins plummeting 30-60%. Market sentiment is currently categorized as 'Extreme Fear'. However, a recovery is underway, with Bitcoin climbing back to $102,000, Ethereum to $3,340, and Solana nearing $160. Analysts suggest such pullbacks are common in bull markets. Reasons for optimism include potential resolution of the US government shutdown and the enduring macro bull case for crypto, driven by continued ETF inflows, upcoming 401k access, rising government spending, and increasing US adoption of Bitcoin. In corporate and ETF news, Bitcoin ETFs saw $566.4 million in net outflows, and Ethereum ETFs saw $219.4 million in outflows. Semiconductor manufacturer Sequans sold $100 million in Bitcoin. Marathon Digital's Q3 revenue hit a record ~$252 million as they continue expansion into AI compute services. Gemini plans to launch a prediction market, having applied for a DCM license from the CFTC.
Background
Bitcoin, as the largest cryptocurrency by market capitalization, has experienced significant growth through 2024 and 2025, partly due to the introduction of spot Bitcoin ETFs which broadened institutional and retail access. Continuous inflows into these ETFs, along with increasing accessibility through traditional financial products like 401k retirement plans, are considered key drivers sustaining the macro bullish outlook. Simultaneously, the US political landscape, particularly the potential for government shutdowns, frequently introduces uncertainty into financial markets, including crypto. The US government under President Donald J. Trump is perceived as relatively open and supportive of cryptocurrencies, potentially fostering domestic crypto innovation and investment.
In-Depth AI Insights
What does Bitcoin's quick rebound after breaking a key psychological price point signal? - Despite massive liquidations in the short term, the swift recovery suggests strong underlying buying interest and continued investor confidence in the long-term macro narrative. - This could represent a healthy deleveraging event, flushing out over-leveraged speculative positions and setting the stage for more sustainable gains. - The average cost basis for spot ETFs (around $89,600) acts as a crucial support level, indicating that most institutional investors remain in profit, reducing the risk of panic selling. How do US government shutdowns and the embrace of crypto influence market dynamics? - The threat of a US government shutdown, even if resolved, can introduce short-term macroeconomic uncertainty, potentially driving investors towards non-sovereign assets like Bitcoin as a hedge. - The Trump administration's