Bitcoin Plunges Below $100K as Bear Market Fears Grip Crypto Markets
Bitcoin has entered bear market territory, dropping below the psychological $100,000 threshold for the first time since late June. The flagship cryptocurrency now trades around $101,000, marking a decline that has sent shockwaves through the digital asset ecosystem. Market sentiment has deteriorated rapidly, with the Crypto Fear and Greed Index plummeting to 20, signaling extreme fear among investors.
Bitcoin Bear Market Signals Emerge After 20% Decline
The leading cryptocurrency officially entered bear market territory with a 20% decline from its October record high, meeting the technical definition that has historically preceded prolonged downturns. The sharp downturn was driven primarily by unprecedented leverage levels rather than weakening fundamentals, creating a volatile environment that has left traders scrambling for safety.
Bitcoin last failed to rise on seasonal tailwinds in October 2018, and in the month that followed, Bitcoin plunged 37% in November of that year. This historical precedent has intensified concerns about the cryptocurrency’s near-term trajectory. The current price action represents a significant departure from the bullish momentum that characterized much of 2024 and early 2025.
Extreme Fear Dominates Bitcoin Price Action
The Crypto Fear and Greed Index dropped to 20, signaling extreme fear as Bitcoin trades around $101,900. This sentiment metric reflects widespread anxiety among market participants who have watched approximately $289 billion evaporate from the total cryptocurrency market capitalization in a single 24-hour period. The market has evolved into its most reactive form in history amid Trump posts and breaking news, amplifying volatility.
Trading volumes have surged during the selloff, indicating heightened market activity. 300,000 traders were liquidated daily on average during the recent correction, highlighting the risks associated with leveraged positions. The mass liquidation event has cleared out speculative excess but left many retail investors nursing substantial losses.
Bitcoin Support Levels Face Critical Test
The $100,000 mark now serves as crucial support for Bitcoin’s price structure. Bitcoin was last trading 5% lower on the day at $100,893, dipping at one point as low as $99,966. Market analysts warn that a sustained break below this psychological level could trigger additional selling pressure, potentially dragging prices toward $95,000 or lower.
Trader and analyst Rekt Capital flagged Bitcoin’s 21-week exponential moving average (EMA) as a nearby trend line to reclaim, at $111,230 at the time of writing. Reclaiming this technical level could provide the foundation for a recovery attempt. However, the path to stabilization remains uncertain given the current market conditions.
Institutional Flows Turn Negative for Bitcoin
Bitcoin spot ETFs recorded $578 million in net outflows, marking the fifth straight day of withdrawals. This persistent exodus of institutional capital contrasts sharply with the robust inflows that characterized earlier periods of 2025. The reversal in ETF flows suggests that even sophisticated investors are reducing their Bitcoin exposure amid the current uncertainty.
Meanwhile, Solana spot ETFs continued to attract investor interest, logging $14.83 million in net inflows for their sixth consecutive day. This divergence indicates a rotation within the cryptocurrency market, with capital flowing toward alternative assets while Bitcoin struggles to maintain its footing.
Bear Market May Last Until Late 2026
Elliott Wave expert forecasts a major bitcoin bear market that could last until at least late 2026, expecting bitcoin to trade between $70K and $80K, and possibly even lower. This bearish outlook aligns with Bitcoin’s historical pattern of extended corrections following major peaks. The bearish sentiment is consistent with bitcoin’s historical trend of peaking and then entering a bear market roughly 18 months after each halving event, with the most recent halving occurring in April 2024.
However, not all analysts share this pessimistic view. Plan C maintains its base case for continued bull market conditions, expecting recovery after briefly dipping below the 50-week moving averages. He argues that the institutional presence and market maturity differentiate this cycle from previous bear markets.
Conclusion
Bitcoin’s descent below $100,000 marks a pivotal moment for the cryptocurrency market. The combination of extreme fear, negative institutional flows, and bearish technical signals suggests challenging times ahead. Whether this represents a temporary correction or the beginning of an extended bear market remains to be seen.
