Bitcoin on the Brink: Could It Crash Below $100,000 Again?
Among altcoins, Dogecoin (DOGE) led the declines with a 4.7% loss, followed by Solana (SOL) (-3.7%) and XRP (-2.7%).
Quick overview
- The cryptocurrency market experienced a decline on Thursday, with Bitcoin falling 2.7% and Ethereum dropping 3.8%.
- Dogecoin led the altcoin losses with a 4.7% decrease, followed by Solana and XRP.
- Recent job cuts in the U.S. and fears of an AI investment bubble are contributing to the downward pressure on crypto markets.
- Analysts view Bitcoin's recent pullback as a healthy correction amidst ongoing macroeconomic uncertainties.
The cryptocurrency market edged lower on Thursday after early morning gains faded. According to Binance, Bitcoin (BTC) fell 2.7%, trading just below $101,320, while Ethereum (ETH) dropped 3.8% to around $3,300.
Among altcoins, Dogecoin (DOGE) led the declines with a 4.7% loss, followed by Solana (SOL) (-3.7%) and XRP (-2.7%).
Layoffs, AI Hype, and Fed Policy Weigh on Bitcoin
October marked the worst month for U.S. job cuts since 2003, as companies like Amazon, Target, and UPS announced massive layoffs to cut costs and invest in artificial intelligence. Employers slashed 153,074 jobs last month, nearly triple the figure from October 2024. Analysts warn that these job cuts could signal a looming recession — a scenario that tends to dampen speculative investments like crypto.
Meanwhile, investors are linking Bitcoin’s slide to a broader risk-asset correction, triggered by growing fears of an AI investment bubble that could end in steep corporate losses. The Federal Reserve’s recent rate cut has also fueled uncertainty about monetary policy heading into December, adding further pressure on crypto markets.
From Trump’s Boost to Renewed Selling
Earlier this week, remarks from U.S. President Donald Trump briefly lifted Bitcoin sentiment. Speaking at the America Business Forum in Miami, Trump vowed to make the U.S. the “superpower of Bitcoin” and the global hub for crypto and artificial intelligence.
“We’re far ahead of China,” he said. “But if we don’t manage cryptocurrencies properly, China and others will try to dominate this industry.”
Analysts now see Bitcoin’s pullback as a healthy correction rather than the start of a prolonged downturn, noting that the market remains sensitive to both macroeconomic shifts and AI-driven speculation.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save