Why is Bitcoin Price Going Down Today? Key Reason Behind It!

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Bitcoin price tumbled close to $98,000 today, marking the third time this month, leaving traders on edge as over $700 million in long positions get wiped out. Once hailed as a bullish month, November is turning red fast, with Bitcoin already down more than 10%.

So, what exactly triggered this sudden crash, and could Bitcoin fall even lower from here?

Reason Behind the Bitcoin Price Drop

Despite the U.S. government reopening after a 43-day shutdown, the broader financial market is still struggling. And here is the key reasons why bitcoin price is still dropping today.

Crypto-Related Stocks Plunge Hard

One of the main reasons behind today’s Bitcoin drop is the sharp plunge in crypto-related stocks, which dragged down the entire market. 

Shares of major crypto firms tumbled, Cipher Mining dropped 14.4%, Riot Platforms and Hut 8 fell 13%, while MARA Holdings and Bitmine Immersion slid over 10%. Even giants like Coinbase and MicroStrategy saw 7% declines.

The sell-off came alongside a broader tech market slump, with the Nasdaq down by 2%, and the S&P 500 has dropped 1.3%.

Sentiment Weakening as Fed Rate Cut Hopes Fade

Another key reason behind Bitcoin’s drop is fading hopes for a December Fed rate cut. Recent comments from Fed officials have dampened easing expectations, pushing investors toward a risk-off stance. This shift has hit speculative assets like crypto the hardest, driving fear among traders.

According to Santiment, social sentiment has turned sharply negative, while the Crypto Fear & Greed Index plunged to 15, its lowest in seven months, showing extreme fear in the market.