Bitcoin hovered just above the $100,000 mark on Tuesday as the cryptocurrency market saw a sharp correction that pushed Ethereum into negative territory for the year.
Ethereum’s native token, ether (ETH), dropped below $3,300, erasing its 2025 gains. Once trading near an all-time high of $4,946 in late August, ETH has since fallen more than 31%, reflecting the broader market downturn.
Meanwhile, Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, started the day around $106,557 before sliding to as low as $100,050, according to market data. The move brings Bitcoin dangerously close to breaching the psychologically significant $100,000 threshold—a level many traders are watching closely.
The sell-off wasn’t isolated to Bitcoin and Ethereum. Other major smart contract tokens, including BNB Chain and Solana, were down more than 7.8%, mirroring ether’s losses. The total crypto market capitalization tracked by CoinGecko fell by 5.8% to $3.45 trillion, wiping out tens of billions in value across digital assets.
Adding to the volatility, at least $1.37 billion in leveraged positions were liquidated earlier in the day after Bitcoin briefly dipped below $104,000. Analysts say the wave of liquidations underscores fragile sentiment among traders still reeling from October’s flash crash—the largest liquidation event in crypto history.
Market observers suggest that the downturn may also reflect changing macroeconomic expectations. Some investors are recalibrating their positions after Federal Reserve Chair Jerome Powell signaled a more cautious stance on potential December interest rate cuts, cooling hopes for a near-term boost to risk assets like cryptocurrencies.
Institutional demand has also shown signs of waning. Bitcoin exchange-traded funds (ETFs) recorded $187 million in net outflows, while Ethereum ETFs saw $136 million withdrawn on Monday, according to data. The steady stream of redemptions highlights reduced appetite from large investors after months of strong inflows earlier this year.
Despite the pullback, analysts note that such corrections are not uncommon in crypto bull markets and may provide opportunities for long-term investors seeking to enter at lower levels. For now, traders are keeping a close eye on whether Bitcoin can hold above the $100,000 line—a key test of market confidence in the weeks ahead.
