What the tech selloff means for the market’s nerves later than BTC fell below $100,000

For the first time since June, BTC (BTCUSD) dipped below $100,000 on Tuesday. In New York trade, it sank to a four-month low of $96,794. The dip puts the world’s largegest cryptocurrency firmly in bear-market territory, down about 20% from its peak of $126,000 in October.

It wasn’t just crypto that fell. AI-related tech firms, which have been a large part of the risk surge in 2025, also lost a lot of value. Nvidia sank 4%, and Palantir fell 8%, even though their earnings were better than expected. The coordinated drop in speculative assets shows that investors are becoming less optimistic and that high prices may not be able to stay high just on promises.

According to analysts at Octa Broker, the $100,000 level for BTC is more than just a technical line; it’s a psychological barrier that shows how confident people are in the market’s ability to bounce back. The most significant question today is whether this is a healthy consolidation before the next step up or the beginning of a larger unwinding of speculative excess.

When BTC and tech stocks go down at the identical time

The most recent drop in BTC prices is similar to the drop in high-growth tech equities, especially those related to artificial intelligence. Investors in these assets are similar: a lot of individual investors, a lot of leverage, and prices that are based on feelings rather than facts.

In the U.S., speculative tech stocks plunged the most, while in Asia, South Korea’s KOSPI index sank more than 6% and Japan’s Nikkei 225 fell about 4.5% at their lows. This shows how rapidly risk aversion can spread across regions.

According to Octa experts, BTC is becoming more like a high-beta tech company and less like “digital gold.” It is becoming more like a risk asset. When liquidity gets tighter or yields go up, both crypto and growth stocks tend to go down. As the global rise in AI sluggishs down, so does interest in crypto. Both markets are now moving in the identical direction as investors pull back from risky subjects.

Four Main Reasons Why BTC Fell

1. The use of leverage will end later than the record liquidation in October.

The $19 billion liquidation of overleveraged long bets in October is still having an effect on the market. Futures open interest is still low, and even though financing rates have returned to normal, traders are still afraid to take up large holdings. With less liquidity, even modest waves of tradeing can cause large swings in prices, which makes the downside pressure even stronger.

2. Lower demand from institutions and outflows from ETFs

The mood of institutions has gotten a lot worse. Between October 29 and November 3, spot BTC ETFs like BlackRock’s iShares BTC Trust (IBIT), Fidelity’s FBTC, and Grayscale’s GBTC saw a total of $2 billion in net outflows. These redemptions don’t show fear; they show people taking profits and resetting their portfolios later than the ETF-driven rise earlier this year.

The lower inflows of ETFs have made platforms less liquid, which has fragileened BTC’s price support even while the overall economy is stabilizing.

3. Whale tradeing and Less Participation from Retailers

large holders, sometimes known as “whales,” have also begined tradeing off positions. Since June, more than 1 million BTC have left long-term wallets. This means that people are taking profits at the cycle highs. Meanwhile, retail involvement has stayed the identical, with new inflows lagging significantly behind levels viewn in ahead 2025. The last correction has been worse because to the mix of whale distribution and low retail demand.

4. large and Political difficultys

In the past, President Trump’s support for cryptocurrencies has bolstered optimism. However, recent political unrest, such as Democrats winning significant elections and the present U.S. government shutdown, has sluggished down possible regulatory progress for digital assets.

At the identical time, inflation in the U.S. rose to 3.0%, which made people less likely to expect the Federal Reserve to decrease rates in the near future. The chance of more easing has gone down from 90% to less than 70%, which has raised the value of the U.S. dollar to a three-month high and made it harder for people to get money throughout the world.

This macro environment has damaged assets that don’t pay interest, like BTC, and put pressure on stocks that are growing rapidly. The market is being careful because of higher real yields, budgetary limits, and sluggisher government expenditure through the Treasury General Account (TGA).

Should I purchase or not?

later than a large decline on Tuesday, BTC tried to bounce back by going back above $103,000 on Wednesday and staying close to the significant $100,000 mark. If the present floor breaks, Octa experts say that the next crucial technical support level is $96,200.

ETF outflows have sluggished down, which is a excellent sign, and the market is still fairly liquid. This suggests that the worst of the panic tradeing may be past. In the past, prices have tended to go back up within two weeks when liquidity stabilizes.

Still, Octa warns that the short-term prognosis is still unclear. BTC’s long-term potential is still strong because of structural factors like more institutions using it, better ETF infrastructure, and clearer rules. This slump may not be a reversal of trend, but rather a necessary correction that gets rid of leverage and brings speculative excess back into balance.

BTC is still up over 10% this year, even later than the current tradeoff. This is better than many other types of assets. Long-term investors can view the present range as a excellent place to build up their positions, while short-term traders should stay disciplined even though the market is still volatile.

The Crypto Fear & Greed Index has dropped to 24 (Extreme Fear), which shows that the market is still quite nervous. Octa analysts say you should wait for a verified reversal trend before getting back in aggressively.

Technical View: The Daily Chart for BTCUSD

From: Octa Trader and TradingView

BTC is still holding steady just above significant support levels. Momentum oscillators show that the market is oversold, but a bounce back will depend on getting back above the $106,000–$108,000 zone, which was support in ahead October. If the price stays below $96,000, the next target on the downside would be about $92,500.

In short

BTC’s drop below $100,000 is similar to a larger drop in speculative assets, which is happening because of tighter liquidity, political uncertainty, and a general aversion to risk in global markets. Octa Broker, on the other hand, views this period as a possible reset rather than a breakdown, with the long-term fundamentals still in place.

Institutional and high-net-worth investors often begin purchaseing again later than periods of turbulence. When leverage unwinds and ETF flows return to normal, the future will probably depend on macroeconomic signals, especially U.S. inflation statistics and changes in central bank policies.

It’s still smart for traders to be careful while keeping an eye on significant technical levels. If confidence comes back, the $100K mark might once again be the base for BTC’s next rise.

Disclaimer: This post is not investment advice and does not take into account your financial condition, goals, or needs. You are the only one who can decide what to do with this information, and Octa is not responsible for any losses or difficultys that may happen as a result.

About Octa Broker

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