**Bitcoin’s Sharp Decline: Price Falls Below $100,000**

Bitcoin’s price fell below $100,000 for the first time since June 23, hitting a low of $98,950 early in the week. The cryptocurrency market experienced significant liquidations totaling $1.7 billion in the past 24 hours, with $487 million linked directly to Bitcoin positions. As a result, Satoshi Nakamoto’s estimated Bitcoin holdings suffered a $9 billion loss in value, dropping from over $121 billion to $112.37 billion.

Explore the recent Bitcoin price drop below $100,000 — its causes, impact on Satoshi’s holdings, and expert predictions for recovery. Stay informed on crypto market volatility and gain valuable insights for investors.

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### What Caused the Recent Bitcoin Price Drop Below $100,000?

The recent drop of Bitcoin’s price below $100,000 was driven by a combination of increased market volatility, significant liquidations, and broader macroeconomic factors affecting investor sentiment.

At the start of the week, Bitcoin experienced a rapid decline, trading 1.22% lower at $102,617 after hitting a low of $98,950 — marking the first sub-$100,000 level since June 23. This movement underscores heightened caution among traders following an October flash crash and cautious statements from Federal Reserve Chair Jerome Powell, which tempered hopes for a December interest rate cut.

Typically, October brings positive momentum for Bitcoin, but this year the seasonal trend did not hold, adding to the downward pressure. Liquidations totaled $1.7 billion across the crypto sector, with $487 million specifically in Bitcoin liquidations — reflecting the impact of leveraged positions amplifying the sell-off.

With trading volumes subdued, market participants are observing rather than actively engaging, leaving short-term price trajectories uncertain as these factors interplay.

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### How Did Federal Reserve Policies Contribute to the Bitcoin Price Drop?

Federal Reserve Chair Jerome Powell’s recent remarks played a pivotal role in Bitcoin’s decline below $100,000 by signaling a more cautious monetary policy stance.

Last week, Powell indicated that expectations for an interest rate cut in December were fading, raising concerns about tighter financial conditions. This development added bearish sentiment, as higher interest rates tend to make riskier assets like cryptocurrencies less attractive compared to traditional safe havens.

Market analysts show that such policy signals often lead to immediate crypto price reactions, with Bitcoin typically leading declines given its market prominence. Reduced optimism around rate cuts leads to capital outflows from high-volatility assets, triggering corrections.

Historical data suggests that past Fed interventions have caused 5-10% price corrections within days, which aligns with the recent $12,000 drop from Bitcoin’s recent highs. The growing interconnectedness between central bank actions and crypto markets highlights how global liquidity trends heavily influence Bitcoin’s valuation — despite its decentralized nature.

Traders closely monitor Federal Open Market Committee updates and adjust strategies accordingly, contributing to the current price consolidation below the key $100,000 threshold.

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### Impact on Satoshi Nakamoto’s Bitcoin Holdings

The drop below $100,000 significantly impacted the estimated holdings of Bitcoin’s pseudonymous creator, Satoshi Nakamoto, who controls approximately 1.096 million BTC that have remained dormant since the network’s inception.

According to Arkham data, Satoshi’s holdings fell by $9 billion in paper value — from over $121 billion on November 3 to around $112.37 billion following the decline. Bitcoin fell from a high of $110,749 on November 3 to a low of $98,892 on November 4.

These wallets, believed to be early miner rewards, remain untouched, serving as a reminder of Bitcoin’s foundational history. While these holdings do not actively trade, fluctuations in their paper value reflect the broader ecosystem’s health and influence long-term holder confidence.

Analysts view this episode as indicative of market maturity, with dormant supplies like Satoshi’s offering a stabilizing undercurrent amid surface volatility. The lack of movement from these addresses also preserves some of the mystery surrounding Bitcoin’s origins.

This situation further sparks discussions about wealth distribution in crypto, where early accumulations continue to impact perceptions of total supply dynamics.

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### Frequently Asked Questions

**What Factors Led to the $1.7 Billion in Crypto Liquidations?**
The $1.7 billion in liquidations resulted from leveraged positions being forcibly closed as Bitcoin’s price dropped below $100,000, including $487 million directly from Bitcoin trades. Similar to volatility observed in October, traders with overextended long positions faced margin calls amid the flash crash, wiping out gains rapidly and emphasizing the need for stricter risk management.

**Will Bitcoin Recover from This Price Drop Soon?**
Bitcoin’s recovery appears likely in the near term. Bitwise Chief Investment Officer Matt Hougan noted signs of retail investor selling exhaustion and expressed optimism for a bottom followed by a rally to new record highs by year-end. This outlook aligns with historical patterns where corrections precede strong rebounds.

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### Key Takeaways

– **Market Volatility Persists:** The Bitcoin price drop below $100,000 highlights ongoing sensitivity to macroeconomic news, with liquidations intensifying short-term declines.
– **Satoshi’s Holdings Unaffected Operationally:** Despite a $9 billion paper loss, the dormant 1.096 million BTC remain untouched, underscoring long-term supply stability.
– **Optimism for Recovery:** Experts like Matt Hougan anticipate retail selling exhaustion and recommend viewing this correction as a potential buying opportunity ahead of year-end gains.

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### Conclusion

The Bitcoin price drop below $100,000, its impact on Satoshi Nakamoto’s holdings, and the influence of Federal Reserve policies all underscore Bitcoin’s vulnerability to external economic pressures. As the market digests $1.7 billion in liquidations amid subdued trading activity, forward-looking insights from experts like Bitwise’s Matt Hougan suggest potential stabilization and a path to new highs.

Investors are advised to monitor liquidity trends closely and consider diversified strategies to navigate the inherent volatility in this dynamic cryptocurrency space.
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