Bitcoin (BTC-PKR) dropped below the $99,000 mark this week, signalling one of the strongest mood shifts in the crypto market this year. The decline reflects a broad pullback in global risk appetite, weakening confidence among institutions and heightened uncertainty around monetary policy. After touching record levels earlier in the year, Bitcoin’s latest retreat is forcing analysts to reassess how far the correction could run and what factors might either stabilise or deepen the sell-off.
The slide took shape as investors dialled back expectations for imminent interest rate cuts in the United States. What had once been viewed as a near-certainty for December is now facing diminishing odds, with policymakers hinting that stronger economic data gives them room to stay cautious.
Bitcoin, which has increasingly traded like a high beta proxy for market sentiment, has been particularly sensitive to this reversal. Without the tailwind of anticipated lower borrowing costs, speculative flows have thinned considerably.
Companies that spent much of the year building crypto-aligned positions are now unwinding exposure, creating heavier selling pressure than retail activity alone could generate. Market participants report a cascading effect, with automated triggers and protective sell orders activating once Bitcoin slipped beneath key technical levels. The break below the $98,000 support point last week was a crucial moment, setting off a more aggressive leg lower as stop-losses were hit and leveraged positions faced liquidation.
Analysts are watching the $75,000 dollar region as the next significant support zone, though many warn that weakened sentiment makes even that level uncertain.
Chayanika Deka from CryptoPotato noted on November 18: “Bitcoin bleeds $1.38B as traders rush into bearish bets, Ethereum hit even harder.”
Bitcoin’s recent behaviour suggests that enthusiasm from earlier in the year has given way to caution, with liquidity thinning on the buy side and rallies struggling to gain traction. Short-term traders have shifted toward defensive positioning, while long-term holders are adopting a wait-and-see approach as volatility remains elevated.
Global market conditions are compounding the pressure. Equities have softened, technology stocks have lost momentum and other speculative assets are showing similar stress. Rather than acting as a hedge, Bitcoin is currently moving in lockstep with broader risk trends, underscoring how tightly crypto has become intertwined with mainstream financial sentiment. This correlation raises the possibility that further turbulence in global markets could continue dragging Bitcoin lower regardless of crypto-specific fundamentals.
For emerging market investors, especially in regions sensitive to global risk flows, the latest downturn serves as a reminder of how quickly sentiment can shift in crypto. The scale of institutional involvement means corrections can develop faster and with more force than in earlier cycles. The current environment demands a careful approach, with close attention paid to monetary policy signals, derivatives positioning and liquidity conditions across major exchanges.