Bitcoin Falls Below $100K As Long-Term Holders Sell $45 Billion
NEW YORK — November 5, 2025 — Bitcoin plunged below the $100,000 mark for the first time since June, triggered by a massive wave of long-term investor selling that totalled more than $45 billion in realized value. Analysts say the decline marks a turning point in the crypto market’s recent rally.
The world’s largest cryptocurrency fell as much as 7.4 percent on Tuesday, extending a drop of over 20 percent from its record high set just a month ago. By Wednesday morning in New York, Bitcoin briefly rebounded 1.7 percent as traders weighed whether the sell-off had run its course.
Veteran Investors Lock In Profits
According to Bloomberg data, the recent downturn was not driven by leveraged positions but by long-term holders liquidating their stakes. These so-called “diamond hands,” who held Bitcoin for years through multiple cycles, have now started to realize profits as prices hit historic highs.
Market analyst David Pan explained that institutional profit-taking often signals a healthy market correction after extended rallies. “The recent liquidations suggest rotation from older wallets into new hands rather than panic selling,” he said. “This activity typically resets market momentum for the next phase.”
Options Traders Brace For More Downside
Despite Bitcoin’s brief bounce, derivatives markets showed renewed bearish activity. Options traders increased short-term put positions, betting on further declines toward the $95,000 support zone. This sentiment follows October’s volatile trading period, when Bitcoin faced similar pressure around the same levels.
However, many on-chain analysts argue that liquidation pressure remains limited. Compared to last month’s highly leveraged sell-off, today’s market appears more stable and driven by profit rotation rather than forced liquidations.
Broader Crypto Market Reacts
Bitcoin’s slide dragged the broader crypto market lower, with major tokens like Ethereum, Solana, and XRP also posting losses over the past 24 hours. Market capitalization for the entire crypto sector fell by 4 percent to approximately $3.6 trillion.
Still, some analysts view the correction as a necessary pause following months of rapid gains. “Long-term investors taking profits is a sign of maturity,” said Olga Kharif of Bloomberg. “It shows Bitcoin is transitioning from a speculative asset to a managed store of value.”
Outlook Remains Cautious But Constructive
While the current retracement has sparked concern, fundamentals remain strong. Institutional inflows into spot Bitcoin ETFs continue to support liquidity, and developers report growing adoption of layer-two scaling solutions.
Traders are watching for price stability above $98,000 to confirm support before a potential recovery. If Bitcoin holds this range, analysts expect the market to consolidate before testing higher resistance levels near $110,000.
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Market Sentiment Turning More Measured
As the crypto industry matures, volatility events like this are increasingly viewed as part of normal market cycles. Long-term investors remain focused on Bitcoin’s macroeconomic role as digital gold, while new entrants are learning to navigate its short-term fluctuations.
“The $100K level is psychologically important,” Pan added. “A decisive rebound above it could restore confidence and signal that Bitcoin’s bull market is not yet over.”
