Bitcoin Plunges Below $100K Amid Risk-Off Sentiment and Dollar Strength

The cryptocurrency market faced a sharp setback this week as Bitcoin briefly dipped below the $100,000 mark — its weakest level since June — under the weight of renewed risk-off sentiment, a stronger U.S. dollar, and fading bullish momentum.

What Triggered the Drop

• The fall happened amidst a broader pullback in risk assets. A stronger dollar and hawkish signals from the Federal Reserve on the outlook for rate cuts undermined demand for speculative and non-yielding assets like Bitcoin.

• On-chain data and derivatives indicators showed heightened forced liquidations of leveraged long crypto positions, exacerbating the move downward.

• The drop in Bitcoin came even as many positive headlines circulated in the crypto space, suggesting that sentiment instead of fundamentals was the dominant driver.

What It Means for the Market

• Breaking a key psychological level like $100K signals a shift from broad bullishness to cautious consolidation in the crypto market. Traders should prepare for higher-amplitude moves in both directions.

• The pullback underscores structural risks of the crypto market: high leverage, thinner liquidity, and strong correlation to macro and FX-driven risk sentiment.

• While long-term bulls remain focused on adoption and institutional flows, near-term performance may be dictated by macro drivers and positioning.

Next Key Levels & Watch-Points

• Support: ~$98,000–$100,000 zone remains key. A sustained break below could open a deeper slide toward ~$90,000+.

• Resistance: Recovery hinges on reclaiming ~$104,000–$110,000; failure to do so could keep sentiment weak.

• Watch for indicators: ETF flows, institutional accumulation, derivatives open interest, and on-chain wallet movements.

• Also monitor macro factors: dollar trajectory, Fed commentary, inflation and jobs data — all can feed into crypto sentiment rapidly.

Outlook

For now, Bitcoin enters a more cautious phase. The tailwind from the euphoric rally has eased, and investors may shift to a “wait and see” mode. However, if the market stabilises above key support and institutional flows resume, the correction could set the stage for the next leg higher.