What Factors Caused Bitcoin to Fall Below $100,000?

The outlook for Bitcoin continues to deteriorate as participants shift to a risk-averse stance.

The largest cryptocurrency has fallen below 96,000 dollars, reflecting a broader risk-averse sentiment in traditional markets.

Macro pressures are exacerbated by the accelerated distribution from long-term Bitcoin holders, according to a report from Glassnode on Thursday. The 30-day supply change held by long-term holders, which was already in negative territory, is sharply declining, indicating that these investors are accelerating their distribution.

These investors sold approximately 815,000 Bitcoins over the past month, increasing selling pressure to its highest level since January 2024.

This decline also comes amid weakened demand due to net outflows from ETFs, reduced buying pressure in the U.S. reflected in Coinbase’s negative premium, and a broader decrease in apparent demand, analysts at CryptoQuanta explained.

ETF Outflows

Demand for Bitcoin and cryptocurrency-related investment funds continued to decline on Thursday, despite the long-awaited end of the 43-day U.S. government shutdown.

U.S. spot Bitcoin ETFs recorded a net outflow of 866 million dollars on Thursday, marking their second-worst day in history after a daily outflow of 1.14 billion dollars on February 25, 2025, according to Farside Investors.

This outflow occurred a day after U.S. President Donald Trump signed a government funding bill on Wednesday. The bill provides funding until January 30, 2026.

The lack of demand for ETFs raises significant concerns among crypto investors, as these funds, along with Strategy Michael Saylor, were key drivers of Bitcoin’s momentum in 2025.

However, according to Ki Young Jua, founder and CEO of the crypto intelligence platform CryptoQuant, the Bitcoin bull market remains intact as long as the price does not fall below the key level of 94,000 dollars, which is the average price for investors who purchased Bitcoin in the last six to twelve months.

– Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions – Jua wrote on Friday on X.