Bitcoin (COIN:BTCUSD) extended losses on Wednesday, briefly dropping under the $100,000 threshold as growing concerns over overheated valuations in global markets sparked another wave of selling in risk assets, including cryptocurrencies.
By 09:48 ET, the world’s largest cryptocurrency was down 1.4% to $103,030, after earlier touching an intraday low of $99,010.06 — its weakest level since mid-June. With that move, Bitcoin officially entered bear market territory, now down more than 20% from its early October record high of $126,186.
The latest downturn mirrored a broader sell-off across global equities, particularly in tech stocks, as traders fled risk-sensitive assets amid warnings of an AI-fueled market bubble.
$1.3 Billion in Crypto Liquidations Deepen the Decline
Bitcoin’s drop accelerated after data from analytics firm CoinGlass showed more than $1.27 billion in leveraged crypto positions were liquidated earlier this week, mostly from traders holding long positions. The widespread wipeout amplified downside pressure as sentiment soured across the digital asset space.
The selloff came as several Wall Street bank CEOs warned of a potential market correction, fueling investor jitters. On Tuesday, the NASDAQ Composite — often correlated with Bitcoin — fell 2%, adding to risk-off momentum.
Despite the turbulence, some analysts maintain a constructive medium-term outlook for Bitcoin.
“BTC remains structurally bullish for now given the rate-cutting environment, though facing short-term bearish pressure driven by macro factors,” said Stan Low, Operations and Research at Grvt, speaking to Investing.com.
Andri Fauzan Adziima, a research analyst at crypto exchange Bitrue, echoed this optimism, noting: “This is merely the fourth correction in the 2025 bull cycle (a routine cleanse), not the onset of a prolonged winter.”
He added, “ETF outflows, a hawkish Fed, and retail capitulation are simply temporary purges following October’s euphoria, while historical data shows every 20%+ drawdown in a bull market typically sparks a 40%+ rebound within 60 days.”
Bitcoin Miners and Crypto Firms See Mixed News
Mara Holdings (NASDAQ:MARA) — one of the world’s largest Bitcoin miners — posted stronger-than-expected third-quarter earnings on Tuesday, sending its shares up over 3% in after-hours trading, though still down 6.7% during the regular session.
Mara reported a 92% year-over-year revenue increase and swung to a profit for the quarter, benefiting from higher Bitcoin holdings and early moves to diversify into AI and data center services alongside its mining business.
Meanwhile, Ripple Labs announced it had raised $500 million in fresh funding, valuing the company at $40 billion. The round was led by Fortress Investment Group and Citadel Securities, following a $1 billion tender offer earlier this year at the same valuation. Ripple said the proceeds will strengthen ties with financial institutions and expand its product suite, which now includes custody, stablecoins, prime brokerage, and treasury services.
With what it called a “more crypto-friendly Trump administration”, Ripple plans to accelerate institutional adoption of its XRP token and expand deeper into global capital markets.
Altcoins Follow Bitcoin Lower
Broader crypto markets moved in lockstep with Bitcoin’s losses.
- Ether (ETH) fell 5% to $3,337.73, after briefly dipping below $3,000 on Tuesday — its lowest level in nearly four months.
- XRP slipped 1% to $2.26, while BNB was flat at $955.61.
- Solana dropped 2.6%, and Cardano lost 0.7%.
- Meme tokens Dogecoin and $TRUMP also edged marginally lower.
Despite the steep correction, market watchers suggest that Bitcoin’s long-term uptrend could remain intact once risk sentiment stabilizes and speculative excesses unwind.