Bitcoin is in the grip of a severe downturn, with its price crashing below the critical $100,000 barrier on Thursday evening. The move compounds a bleak period for the cryptocurrency, which has plummeted from its record high of $124,000 set in October 2025. Worryingly for investors, the digital asset is completely failing to keep pace with traditional equity markets, which have recently been posting new highs.
The Institutional Exodus
The chief concern for market analysts is the rapid withdrawal of institutional investors. According to Bloomberg News, the forces that once fuelled Bitcoin’s ascent are now firmly in retreat, leaving the asset struggling to recover from what is described as a $330 billion hole.
Following a difficult October, the recovery has been sluggish at best. Many of the largest buyers, from corporate treasuries to ETF providers, have been quietly pulling back. Data shows that Spot Bitcoin ETFs have seen significant outflows of approximately $2.8 billion. This development has removed a critical layer of capital-flow support that propelled the asset to its record highs earlier in the year.
The market was also hampered by the six-week US government shutdown, which paralysed key regulators like the SEC and CFTC and caused ETF inflows to dry up.
Investor Fatigue and Portfolio Rebalancing
Patience is now wearing thin among professional investors. Bitcoin’s disappointing 10 per cent gain so far this year significantly trails the performance of traditional assets like gold or, more pointedly, major technology stocks.
Markus Thielen, managing director at 10X Research, noted growing signs of fatigue. “At some point, the risk manager might step in and say, ‘You have to close or reduce your position’,” Thielen remarked. “There’s a risk that Bitcoin will continue to underperform because people have to re-orient their portfolios. They probably need to buy more Nvidia when sending their report to investors.”
Technicals Turn Bearish
The downward pressure intensified late on Thursday, confirming a bearish technical picture. The sharp slide saw Bitcoin trading 3.5 per cent lower over a 24-hour period, hitting $98,000.
The day’s low on the Bitstamp exchange was $97,950, a breach of key support levels from early November and even the short-term dip seen on 22 June 2025. Should this momentum continue, analysts are bracing for a further slide towards $95,000, or perhaps lower. Chartists are also nervously eyeing an impending ‘Death Cross’—a technical signal where the 50-day moving average crosses below the 200-day average, often heralding further losses. However, it remains possible that opportunistic buyers could step in at these depressed levels, triggering a quick rebound.
US Data Gap Adds to Uncertainty
Compounding the negative sentiment is lingering uncertainty from the United States. While the recent end of the government shutdown allows regulators to resume processing new ETF applications, it has left a dangerous void in the market.
Critical inflation and employment data for October will reportedly never be published. This data gap means the Federal Reserve is effectively “flying blind” as it determines future interest rate policy. As Adam Chu, chief analyst at GreeksLive, explained, this lack of clarity significantly increases uncertainty for all financial markets at the next Fed decision.
A Surprising Central Bank Move
In a surprising, if small, counter-development, the Czech National Bank (CNB) announced on Thursday that it had made its first purchase of Bitcoin.
The central bank stated it has allocated $1 million for a test portfolio comprising Bitcoin, USD stablecoins, and a tokenised US dollar deposit. The CNB clarified the purchase was made “as part of the CNB’s regular financial activities” and is held completely outside of its official international reserves. This experimental step follows the bank’s acquisition of a stake in the crypto exchange Coinbase during the second quarter.
Long-Term Holders Urged to Stay Calm
Despite the sharp decline and worrying technical signals, some experts are urging caution. As Nikolas Keßler of DER AKTIONÄR put it, “For long-term oriented crypto investors in particular, there is currently no need to act and certainly no reason to panic.”