Over $840 billion wiped from global crypto market cap amid renewed caution on rate cuts and fading risk appetite.
NEW YORK — Bitcoin (BTC) tumbled below the $100,000 mark on Tuesday — its lowest level in five months — as investors pulled back from riskier assets amid growing uncertainty over the Federal Reserve’s next move on interest rates. The drop marks a stunning reversal for the world’s largest cryptocurrency, which hit an all-time high of $126,000just one month ago.
Bitcoin’s price fell 6.4% in 24 hours to around $99,780, extending a 12.4% weekly loss and dragging the broader crypto market sharply lower. Ethereum plunged 20.8%, BNB fell 19.2%, XRP slid 18%, Solana dropped 22.2%, and Dogecoin lost more than 20% — a synchronized correction that erased roughly $840 billion from the global crypto market’s value over the past month, according to CoinMarketCap.
The selloff comes after the Fed cut interest rates by 0.25 percentage points last week but signaled a more cautious stance going forward. Chair Jerome Powell emphasized that further easing in December was “not guaranteed,” a message reinforced Monday when Fed Governor Lisa Cook said she remained undecided on the next cut. That uncertainty has rattled traders who had bet on a faster monetary pivot.
Historically, Bitcoin’s biggest rallies have coincided with periods of loose monetary policy. When the Fed slashed rates during the 2020 pandemic, Bitcoin soared from $5,000 to $69,000 within 18 months. Conversely, past tightening cycles — such as in 2018 — saw the token crash from $20,000 to $3,000.
October’s performance was especially grim: Bitcoin fell 3.7% for the month, its worst October in a decade, ending a historic bull run fueled by optimism over U.S. crypto deregulation. The pullback also follows several high-profile institutional announcements — including Trump Media & Technology Group’s $2.5 billion bitcoin reserve plan and reports that the U.S. Treasury holds between $15 billion and $20 billion worth of Bitcoin — that had previously boosted sentiment.
While the long-term narrative for digital assets remains bullish, analysts warn that valuations had become “detached from fundamentals.” “The market got ahead of itself,” said one strategist. “AI, gold, and crypto all priced in a perfect dovish scenario that hasn’t materialized.”
For now, Bitcoin’s break below six figures is more than a technical correction — it’s a psychological blow. The trillion-dollar question for investors is whether this is a short-term shakeout or the start of a deeper reset for the digital asset class that, until recently, seemed unstoppable.
