Bitcoin Drops Below $100K as Crypto and Tech Stocks Plunge Amid U.S. Liquidity Crunch
13/11/2025
Bitcoin (BTC) and the broader cryptocurrency market slid sharply during Wednesday’s U.S. trading hours, erasing overnight gains and signaling a potentially muted end to 2025. BTC had briefly reached $104,000 overnight before retreating below the $100,000 mark, down 1.7% over the past 24 hours. Ether (ETH) and other major altcoins also fell, reflecting widespread selling pressure across digital assets.
The decline coincided with broader weakness in risk markets, as investors adjusted expectations that the Federal Reserve may hold rates steady rather than cut in December. The Nasdaq fell 2%, while the S&P 500 declined 1.3%.
Crypto-Linked Equities Hit Hard
Crypto stocks, particularly miners exposed to AI infrastructure and data centers, faced steep losses. Bitdeer (BTDR) dropped 19%, Bitfarms (BITF) fell 13%, while Cipher Mining (CIFR) and IREN lost over 10% each. Other crypto-related equities, including Galaxy (GLXY), Bullish (BLSH), Gemini (GEMI), and Robinhood (HOOD), also slid 7%-8%, underscoring a sector-wide pullback.
BTC’s 2025 Peak May Be Behind Us
The intraday weakness in U.S. trading hours highlights a persistent trend: crypto prices falter when macroeconomic uncertainty weighs on risk assets. Paul Howard, senior director at trading firm Wincent, said, “Crypto is more sensitive to macro conditions than ever. With markets pricing roughly a 50/50 chance of a December Fed rate cut, BTC is likely to remain range-bound for the rest of the year.”
Howard added, “It appears we’ve seen the highs for 2025. From here, expect gradual appreciation over the next year, though volatility will persist.”
Liquidity Strains and Fiscal Dynamics
The ongoing U.S. government shutdown has further complicated liquidity flows. Fiscal data revealed a $198 billion federal surplus in September, with October expected to show an even larger surplus due to the shutdown. Market analyst Mel Mattison noted, “This has been one of the driest periods for fiscal liquidity in years, constraining risk assets including crypto. However, upcoming fiscal measures could release substantial liquidity, potentially supporting price gains.”
Mattison cautioned that the next few weeks may remain volatile, but added that renewed liquidity could provide a catalyst for upward momentum across crypto and broader markets.
