Recent Bitcoin Fall Asked To Be Viewed As a Buying Opportunity
On Tuesday, for the first time since May 2025, Bitcoin fell beneath the $100,000 level after leveraged positions worth billions were liquidated. This transpired amidst a massive deleveraging event, following the powerful washout on October 10.
Bitcoin’s Intraday Low and Subsequent Recovery
After plunging to an intraday low of $99,980, Bitcoin’s value managed to stabilize on Wednesday at nearly $101,700. This recovery somewhat mitigated the far-reaching crypto market reprieve. Nic Puckrin, who co-founded The Coin Bureau, opined that while Bitcoin plummeting below the six-figure amount may hold psychological importance, it wasn’t necessarily indicative of structural damage.
“Investors in cryptocurrency often feel a near-biblical level of dread when the value of Bitcoin drops below $100,000,” Puckrin shared. “However, despite this decrease, Bitcoin is still just about 20% below its highest recorded value. We’re discussing cryptocurrency, not the bond market. A fall of 20% is frequently seen as a buying opportunity.”
Leveraged Positions and the Resulting Market Impact
Leveraged positions exceeding $1.7 billion, including over $1.3 billion in long positions, were liquidated across various exchanges as per data from CoinGlass. With major altcoins such as Ether and SOL taking a nosedive, the total market cap for crypto saw a decline of more than 2%, amounting to around $3.4 trillion. This caused nearly $289 billion worth of values to be wiped out within a 24 hour period.
In reality, this might be an underestimation. Major derivatives markets like Binance and OKX only sporadically publish their liquidation data. Analysts who have shared insights with The Block determined that macroeconomic instability and significant deleveraging set off the selling trend. The crypto market, still perceived as a high risk asset, bore the brunt of a wave of global risk aversion that hit equities and commodities.
ETF Redemptions Exacerbate Bitcoin’s Slide
Bitcoin’s descent was further aggravated by exchange-traded fund (ETF) redemptions. Spot ETFs for Bitcoin saw $578 million in outflows on November 4, marking a fifth consecutive day of redemptions. Ether ETFs also suffered a loss of $219 million, while Solana attracted $14.8 million inflows, thus continuing its winning streak.
Meanwhile, relations between China and the U.S. seem to be thawing, with China announcing a one-year suspension on their 24% additional tariff on U.S. goods. This caused global markets to stabilize momentarily, and Bitcoin managed to rebound past six figures once more following its initial drop.
Potential Future of Bitcoin
Puckrin, along with Timothy Misir, the head of research at BRN, argued that Tuesday’s activity was more of a structural reset rather than a full-on capitulation. Misir shared the notion that the reducing leverage sets a leaner base for future price dynamics.
“Long-term holders are largely unmoved,” Misir wrote, adding however that recovery would need to occur through ETF inflows or new corporate demand. He also stated that the Bitcoin’s onchain cost basis support lies between $98,000 and $100,000, resistance is expected at approximately $107,000 to $110,000. According to Misir and other analysts, unless ETF inflows pick up or macroeconomic conditions take a positive turn, Bitcoin is expected to stay within this range as the market regains confidence.
The massive sell-off on Tuesday may have been sudden and vicious, but it wasn’t terminal, Misir explained to The Block. “It was leverage, not belief, that left the system. The system is now leaner and healthier, and less prone to cascading risk. But sentiment remains brittle, and patience remains the most valuable asset on the board.”
