Bitcoin Plummets to $99K Amidst LTHs Sell-off, Yet Investor Faith Remains Unshaken

Key Points

• Bitcoin’s price fell below $100,000 due to factors such as fear, liquidations, reduced institutional interest, and long-term holders selling off.
• Despite the recent drop, Bitcoin managed to recover to $101,000.

On November 5, the volatility in the crypto market persisted, resulting in Bitcoin’s price falling to $99,000, thereby breaking the significant psychological barrier of $100,000.

The price drop of Bitcoin was influenced by several elements, including the aftermath of the cascade in liquidations on October 10, declining institutional interest, and the sell-off by long-term holders.

Bitcoin’s Price Movement on November 5

As of the writing of this article, Bitcoin is trading above $101,000, having decreased by 2% in the last 24 hours. The price of Bitcoin had earlier dropped to $99,000 before slightly rebounding to its current levels.

The general crypto market is also experiencing volatility and has decreased by over 1.8% today, with a market cap exceeding $3.38 trillion. The Fear and Greed Index currently indicates fear, nearing extreme fear levels.

Triggers for Bitcoin’s Price Decline

Bitcoin has fallen approximately 20% since its latest all-time high, turning what should have been a prosperous October into a Red October. The decline of Bitcoin since reaching its new all-time high above $126,000 on October 6 can be attributed to multiple factors, including the selling by long-term holders.

On November 5, Bloomberg reported that more than 319,000 BTC, currently valued at over $32.4 billion, have been reactivated in the past month, primarily from long-term holders. These holders are entities that have held Bitcoin for six to twelve months.

The movement suggests that whales have been realizing profits, and while some reactivation is due to internal transfers, a significant portion reflects actual selling.

In the past month, long-term holders sold approximately 400,000 BTC, currently valued at over $40 billion. Since the crash on October 10-11, broader demand has fallen, and individuals need to close their positions, according to Thielen.

After the significant crypto liquidation event on October 10-11, traders have continued to use leverage, leading to new liquidations in the market. Over $1.72 billion in crypto positions were liquidated in the past 24 hours, with $1.31 billion in longs and over $406 million in shorts.

Institutional interest in Bitcoin has been waning, and the US-based Bitcoin ETFs have recorded outflows for five consecutive days since October 29. The most significant outflow day was on November 4, when the crypto products saw outflows of more than $577.7 million.

Multiple DeFi protocols have experienced losses of hundreds of millions lately, including Balancer, Stream Finance, and others. These events have also led to diminished trust in the industry and sell-offs.

Future Prospects for Bitcoin and Crypto

Despite the recent drop, there are plenty of reasons for optimism in the crypto industry at the end of 2025. After whale sell-offs and multiple market shakeouts, Bitcoin’s upward trajectory should resume.

Following a drop below $100,000 on November 5, Bitcoin managed to bounce back above this important level. Today marks a year since the US elections, and despite its latest 20% drop from its new all-time high, Bitcoin is up by almost 50% since the same day in 2024.

The Trump administration has implemented friendlier crypto regulation, as promised by the US President. Tensions between the US and China have eased, which is beneficial for the entire industry.

During the last FOMC meeting in the US, the Fed highlighted the end of QT on December 1st. Despite the uncertainty of a new rate cut this year, the end of QT is a bullish sign for the markets.

Bitcoin and crypto continue to see rising global adoption and real-world uses. Today, it was revealed that Switzerland established its own Bitcoin Treasury Company called Future Holdings – an extremely bullish sign for the European crypto ecosystem. Future secured $35 million to bridge Bitcoin with legacy finance.

All these are clear signs that conviction in Bitcoin is far from over – it’s silently rising globally.

Jordi Visser, the founding Managing Partner of Anchor Point Asset Management, a global macro hedge fund, and a former Managing Director at Morgan Stanley, recently released an important work called “Bitcoin’s Silent IPO: Why This Consolidation Isn’t What You Think”, addressing the quiet liquidity event that’s reshaping Bitcoin’s ownership base and its future stability.

Despite the recent crash and volatility triggered by multiple reasons including the use of excessive leverage and sell-offs, the Bitcoin ecosystem and the entire crypto industry didn’t lose conviction. The ecosystem is maturing, and after shaking out the weak hands, it will continue to flourish, and innovation will prevail.