Bitcoin Plunges Below $100K for First Time Since June as Crypto Correction Worsens

Core Insights - Bitcoin (BTC) has fallen below the $100,000 mark, reaching its lowest price since late June, amidst a broader correction in the cryptocurrency market [1] - The cryptocurrency has declined over 20% from its record high of above $126,000, which was achieved just a month ago [2] - Recent selling pressure has been attributed to the Federal Reserve's unexpected hawkish stance, dampening expectations for an interest rate cut in December [3] Market Performance - Bitcoin's recent struggles are occurring alongside record rallies in stocks and gold, with a notable sell-off across various asset classes, including a 2% drop in the Nasdaq and a 1.6% decline in gold [4] - The current downturn is characterized by a shift from strong demand from ETF investors to long-term wallets offloading their holdings, suggesting a potential bear market aligning with Bitcoin's historical four-year cycle [5] Future Outlook - Analysts suggest that if Bitcoin can maintain a price above $100,000, it may prevent widespread panic selling and deeper liquidations [5] - Despite current macro pressures, including concerns about interest rates and market valuations, the long-term outlook for Bitcoin remains positive, with potential for new all-time highs due to accelerating institutional adoption [6][7]