The cryptocurrency markets are flashing deep red at present, bleeding profusely as Bitcoin tumbles to sit at $101K at press time. The token, which once scaled to $120K, is now down significantly from its ATH, hovering near $101K. Any precarious dip could push BTC back into the double-digit domain, triggering liquidations once more. In the latest crypto market crash update, here’s why Bitcoin is down today.
Also Read: Top 3 Crypto Dips To Buy Now That Bitcoin Is At $101K
Crypto Market Volatility Peaks: Why Is Bitcoin Down Today?
There are two possible reasons that have recently pushed Bitcoin to explore new lows as of late. Per Cryptoquant and Xwinfinance, BTC is exploring low price pedestals due to the overextended government shutdown period, adding more stress to the market lately.
“Bitcoin Under Pressure as U.S. Government Shutdown Disrupts Liquidity Flows. While the CBO expects a temporary rebound once the shutdown ends, the on-chain data suggests confidence and capital will take longer to recover.” – By xwinfinance”
Moreover, a new update shared by the Kobeissi Letter emphasizes leverage as the main culprit pushing BTC below to explore the $100K range.
“The million-dollar question: What is happening with crypto right now? Crypto markets have now officially erased over -$1 TRILLION of market cap since October 6th. But why? The answer to this question seems to be more technical than fundamental. That is, crypto adoption is still at record highs, deregulation is in full swing, and technology is advancing rapidly. However, leverage is at unprecedented levels, which is amplifying moves in the market, such as the $20B liquidation seen on October 10th. As a result, when uncertainty arises or technical momentum fades, downward swings are amplified.”
Can Bitcoin Recover Soon Enough?
According to CoinCodex BTC Stats, Bitcoin is on a path to sit at $136K by February 2026, hoping to recover soon per recent statistics.
“According to our latest Bitcoin price prediction, BTC is forecasted to rise by 34.42% and reach $136,245 by February 2, 2026. Per our technical indicators, the current sentiment is bearish, while the Fear & Greed Index is showing 21 (Extreme Fear). Bitcoin recorded 14/30 (47%) green days with 4.53% price volatility over the last 30 days. Last update: Nov 5, 2025 – 05:54 AM (GMT+5).”
Also Read: Will Bitcoin Falling Below $100,000 Lead to a 2022-Like Crash?