Bitcoin has fallen below the crucial $100,000 mark and is now trading around $97,000 for the first time since May. The decline underlines growing weakness in bullish momentum as traders struggle to defend key support levels amid rising macroeconomic uncertainty and declining risk appetite. Market sentiment has turned sharply fearful, with investors becoming increasingly cautious following a wave of liquidations and declining volume on the major exchanges.
According to data shared by CryptoQuant analyst Axel Adler, Bitcoin’s performance has significantly lagged behind traditional assets. Year-to-date, BTC is up just 5.5%, a gain that now threatens to completely evaporate if current conditions persist. In stark contrast, gold rose 5.6% last week, continuing its strong rally as investors sought safer havens amid global volatility.
While Bitcoin’s long-term structure remains intact, its short-term weakness reflects a tightening liquidity environment and growing skepticism about risky assets.
Bitcoin faces harsh comparisons as traditional markets outperform
Axel Adler highlights how Bitcoin’s subdued performance stands in stark contrast to the impressive gains seen in traditional markets this year. His analysis paints a sobering picture of where capital will have flowed in 2025.
Gold leads the pack with a staggering 55% year-to-date (YTD) gain, driven by global uncertainty and strong institutional demand. Copper follows with +27%, benefiting from industrial expansion and supply constraints. Meanwhile, risk assets such as the Nasdaq (+21%) and the S&P 500 (+16%) have also delivered consistent returns, reflecting continued investor confidence in equities despite macroeconomic headwinds.
Against this backdrop, Bitcoin’s modest 5.5% YTD gain looks increasingly disappointing. Adler notes that professional fund managers are often judged against the S&P 500 benchmark, meaning that any underperformance tends to be quickly scrutinized. “If a fund manager returns less than the S&P 500, he usually doesn’t stay in his position for long,” Adler notes—a stark reminder of how traditional assets continue to set the standard for performance.
His final comment cuts to the heart of the matter: “You don’t need a Harvard degree to buy SPY.” The implication is clear: in a market where simplicity and stability outperform speculation, Bitcoin must prove its resilience or risk losing investors’ attention.
Bitcoin falls below $100,000 as selling pressure increases
Bitcoin’s price has fallen sharply below the psychological $100,000 mark and is currently hovering around $97,300, after losing more than 2% in the past 24 hours. The daily chart shows a clear continuation of the recent downtrend, with BTC now trading well below its 50-day and 100-day moving averages, indicating continued weakness in short-term momentum.
The next major support zone is around $94,000, where Bitcoin previously consolidated in early summer. A decisive breakout below this level could open the door for deeper retracements towards the 200-day moving average near $88,000-$90,000. On the other hand, regaining $100,000 as support will be crucial for any potential recovery as that level now acts as a strong resistance barrier.
Volume data shows an uptick in sell-side activity, confirming growing pressure from profit-taking and potential liquidations. Despite the pullback, analysts suggest that the recent correction could serve as a reset for the market, helping to reduce debt burden and prepare for a healthier recovery phase.
Bitcoin is still in a volatile consolidation period, with macro uncertainty and currency inflows weighing on sentiment. Bulls must defend current levels to prevent momentum from shifting decisively towards a deeper mid-cycle correction.
Featured image of ChatGPT, chart from TradingView.com
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