Bitcoin Price Crashes Below $98,000 To 6-Month Low

Bitcoin experienced a sharp decline in price today, dropping from an intraday high of $104,000 to $98,113, erasing earlier gains and signaling a significant breakdown in price action. The downward trend started in morning trading, with Bitcoin’s price steadily decreasing from the upper $102,000s to a low of $97,870.

Data from Bitcoin Magazine Pro indicates that the last time Bitcoin’s price was at these levels (below $98,000) was in early May, around May 8th. Following that, Bitcoin surged above $100,000 for over 40 days before dropping back to $98,000 in late June. One possible reason for the current price decline is long-term holders selling at record levels. CryptoQuant data shows that approximately 815,000 BTC were sold in the past 30 days, the highest amount since early 2024, while demand from spot and ETF markets weakened. Profit-taking has been prevalent, with $3 billion in realized gains on November 7th alone.

Institutional buying has also decreased below daily mining supply, adding to the selling pressure. The price is now hovering around the crucial 365-day moving average of $102,000, and failing to hold this level could lead to further losses, according to analysis from Bitcoin Magazine Pro.

Analysts at Bitfinex point out that the current pullback in Bitcoin’s price resembles past mid-cycle retracements, with the drop from October’s high matching the typical 22% drawdown seen during the 2023–2025 bull market. Despite the current price level, approximately 72% of the total BTC supply remains profitable. Bitfinex analysts anticipate a short relief rally but suggest that a sustained recovery will require fresh demand.

According to The Block, JPMorgan analysts believe that Bitcoin’s current estimated production cost of $94,000 acts as a historical price floor, indicating limited downside potential. They attribute the higher production costs to rising network difficulty, which has kept Bitcoin’s price-to-cost ratio near historical lows. The analysts maintain a bullish 6–12 month upside projection of around $170,000.

Amidst these market developments, the U.S. government has reopened after a record 43-day shutdown, with President Trump signing a funding bill late Wednesday. While federal operations are resuming, the recovery process is expected to be gradual. Federal workers are still awaiting backpay, and air travel delays may persist.

Timot Lamarre, director of market research at Unchained, views Bitcoin as a signal of liquidity drying up in the market. He notes that the recent government shutdown led to a significant increase in the Treasury General Account, absorbing liquidity. With the government reopening, more liquidity injected into the system could benefit Bitcoin’s price in the near term.

As agencies like the IRS face backlogs and national parks struggle to recover lost revenue, the effects of the prolonged government closure continue to ripple through the economy and public services.

Bitcoin’s price surged in October but has since experienced a turbulent period, with the price currently standing at $98,470. Despite a generally bullish sentiment in the market, Bitcoin’s price has continued to decline throughout the month.

Wintermute’s report highlights the correlation between Bitcoin and the Nasdaq, noting that Bitcoin reacts more strongly to stock market drops than gains. This negative skew suggests investor fatigue rather than euphoria, as attention and capital have shifted towards equities in 2025. Despite this downside bias, Bitcoin remains resilient and is less than 20% below its all-time high, reflecting its maturation as a macro asset.