Bitcoin and the rest of the crypto market continued its trend of not only losing ground, but more importantly sliding the most during US market hours.
Following a recent trend, BTC rebounded as high as $104,000 overnight but reversed course in early US hours, dipping below $100,000 by early afternoon on the east coast and is now down 1.7% in the past 24 hours.
The pullback came amid a sharp, broad-based decline in risk assets, as investors realize that the Fed – for now – appears to have no plans to cut rates in December. The Nasdaq is down 2% and the S&P 500 is down 1.3%.
Cryptocurrency-related stocks were once again hit hard, especially mining companies with heavy AI infrastructure and exposure to data centers. Bitdeer (BTDR) plunged 19% and Bitfarms (BITF) 13%, while Cipher Mining (CIFR) and IREN lost more than 10%. The rest of the crypto stock sector also saw steep losses: Galaxy (GLXY), Bullish (BLSH), Gemini (GEMI), and Robinhood (HOOD) were all down 7-8%.
BTC peak in 2025 could be reached
The pullback underscores a trend that has defined crypto markets in recent weeks: continued weakness during U.S. business hours, coinciding with cooling expectations of a Federal Reserve rate cut in December.
“Crypto is closely linked to the macroeconomy, more than ever before,” said Paul Howard, senior director at trading firm Wincent.
With markets now pricing in a roughly 50/50 chance for a 25 basis point rate cut next month, Howard expects BTC to remain quiet near current levels for the remainder of the year.
“I feel like with just six weeks to go, we’ve hit all-time highs for 2025,” he said. “From there we will likely get a steady climb over the coming year – the volatility is acknowledged.”
The shutdown continues to reverberate
Investors love to denounce public deficits, but in this attitude they often lose the liquidity which stimulates assets and which circulates on the markets thanks to these deficits.
The government shutdown – to the extent that it has even temporarily reduced or reversed these deficits – appears to be having the exact opposite effect on markets. Market watcher Mel Mattison noted that the federal government actually ran a $198 billion budget surplus in September. October data will arrive later today and will likely show an even larger surplus given that much of DC was shut down for the entire month.
“We’ve had one of the driest periods for fiscal liquidity in months, if not years,” Mattison said Thursday. The good news, according to Mattison?
“The floodgates are about to open,” he said. “THE [Trump administration] will trigger a tsunami of budgetary largesse over the coming quarters. The midterms must be defended.”
The next few weeks could remain choppy, Mattison continued, but as liquidity returns, a rise in prices should also occur.
UPDATE (November 13, 5:05 p.m. UTC): Updates Bitcoin Price Falling Below $100,000.
