Bitcoin and the rest of the crypto market continued the trend of not just losing ground, but especially sliding the most during the US market.
Following a recent pattern, BTC had risen as high as $104,000 overnight, but reversed course in the early US hours, plummeted below $100,000 in the early afternoon on the East Coast, and is now lower by 1.7% over the past 24 hours.
The retreat came amid a steep broad-based decline in risk assets as investors come to grips with the idea that the Fed — for now — appears to have no intention of cutting interest rates in December. The Nasdaq has fallen 2% and the S&P 500 1.3%.
Crypto-linked stocks were once again hit hard, especially miners with heavy AI infrastructure and data center exposure. Bitdeer (BTDR) fell 19% and Bitfarms (BITF) fell 13%, while Cipher Mining (CIFR) and IREN lost over 10%. The rest of the crypto-stock sector also saw big losses: Galaxy (GLXY), Bullish (BLSH), Gemini (GEMI), and Robinhood (HOOD) all fell 7%-8%.
BTC’s 2025 top could be within
The pullback underscores a trend that has defined crypto markets in recent weeks: persistent weakness in US hours coinciding with cooling expectations of a December interest rate cut by the Federal Reserve.
“Crypto is closely linked to macroeconomics now more than ever,” said Paul Howard, senior director at trading firm Wincent.
With markets now pricing in roughly 50/50 odds for a 25 basis point rate cut next month, Howard expects BTC to remain muted near current levels for the rest of the year.
“My sense is that with only six weeks to go, we’ve seen all-time highs for 2025,” he said. “From here we are likely to get a steady ascent over the coming year – volatility acknowledged.”
The shutdown continues to reverberate
Investors love to dismiss government deficits, but often lost in that attitude is the asset-enhancing liquidity that sloshes around the markets thanks to those deficits.
The government shutdown — to the extent that it even temporarily narrowed or reversed those deficits — appears to be having the exact opposite effect on markets. Market-watcher Mel Mattison noted that the federal government actually had a fiscal surplus of $198 billion in September. October data is due later today and is likely to show an even bigger surplus as much of DC was shut down for the entire month.
“We’ve had one of the driest periods for fiscal liquidity in months, if not years,” Mattison said Thursday. The good news, according to Mattison?
“The floodgates are opening,” he said. “The [Trump administration] is going to unleash a tsunami of fiscal grandeur in the coming quarters. The middle roads must be defended.”
The next few weeks could remain bumpy, Mattison continued, but as liquidity returns, so should upward price movement.
UPDATE (November 13, 17:05 UTC): Updating bitcoin price falling below $100,000.
