Bitcoin has taken a significant tumble, recently trading near $97,000, marking its first dip below the crucial $100,000 threshold since May. This decline highlights a weakening bullish momentum, as traders find it increasingly challenging to uphold essential support levels amidst escalating macroeconomic uncertainties and a waning risk appetite. The current market sentiment has shifted sharply toward fear, with investors adopting a cautious stance following a series of liquidations and dwindling trading volumes across prominent exchanges.
Recent analyses from CryptoQuant analyst Axel Adler illustrate how Bitcoin’s performance has significantly lagged behind that of traditional assets. So far this year, Bitcoin’s year-to-date (YTD) gains stand at a modest 5.5%. This figure is at risk of diminishing further if present conditions persist. In stark contrast, gold has experienced a remarkable 5.6% surge just within the past week, bolstered by a rush for safer investments amid global volatility.
Despite Bitcoin’s robust long-term fundamentals, its short-term performance reveals a tightening liquidity environment and increasing skepticism towards risk assets. Adler’s insights shed light on this disparity, emphasizing Bitcoin’s lackluster showing against the impressive upswing of traditional markets in 2025.
Bitcoin Faces Harsh Comparison As Traditional Markets Outperform
Adler notes that Bitcoin’s tepid results starkly contrast with the strong performances of traditional markets this year. His analysis paints a worrying picture regarding capital flow trends. Gold stands out with a staggering 55% YTD increase, fueled by global uncertainties and substantial institutional demand. Additionally, copper has followed suit, rising by 27% thanks to industrial growth and supply constraints. Risk assets like the Nasdaq (+21%) and S&P 500 (+16%) have also shown consistent returns, indicating that investor confidence in equities remains robust despite macroeconomic headwinds.
In this context, Bitcoin’s current YTD gain of just 5.5% seems increasingly unremarkable. Adler points out that professional fund managers often benchmark their performance against the S&P 500, leading to heightened scrutiny in the face of underperformance. He notes, “If a fund manager delivers less than the S&P 500, they usually don’t stay in the job for long.” This observation serves as a stark reminder that traditional assets continue to dictate performance standards.
His final remark cuts straight to the bone: “You don’t need a Harvard degree to buy SPY.” This emphasizes a broader market sentiment where straightforward, stable investments outshine speculative ventures, urging Bitcoin to demonstrate its resilience to retain investor interest.
Bitcoin Slips Below $100K as Selling Pressure Builds
As the selling pressure intensifies, Bitcoin’s price has plunged well below the psychological $100,000 mark, currently around $97,300, reflecting a loss of over 2% in the last 24 hours. Analysis of the daily chart reveals a continuation of the downtrend, with Bitcoin trading significantly beneath its 50-day and 100-day moving averages, indicating persistent short-term weakness.
The next critical support level is identified near $94,000, a price point where Bitcoin previously consolidated earlier in the summer. A decisive drop beneath this level could open pathways to deeper retracements toward the 200-day moving average, situated between $88,000 and $90,000. Conversely, reclaiming $100,000 as support is vital for any chances of recovery, as this level now presents a formidable barrier to overcome.
Trading volume data reveals a surge in selling activity, underscoring heightened pressure from profit-taking and possible liquidations. Despite the pullback, analysts propose that this correction may serve as a necessary market reset, enabling excess leverage to unwind and paving the way for a more vigorous recovery phase.
Bitcoin remains caught in a tumultuous consolidation phase, burdened by macro uncertainties and exchange inflows that weigh heavily on investor sentiment. Bulls must work diligently to defend current levels to avert a decisive shift towards a more profound mid-cycle correction.
