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Crypto Market Update: Traders Reduce Risk as Bitcoin Tests Key $100K Support

Crypto Market Update: Traders Reduce Risk as Bitcoin Tests Key $100K Support

Coinpedia2025/11/07 22:03
By:Coinpedia
Story Highlights

The crypto market is ending the week on a weaker note. Bitcoin price has slipped to around $99,984 and is struggling to hold the key psychological level of $100,000. Over the last 30 days, Bitcoin has dropped nearly 18%, ending what was earlier a strong bullish phase. The main reason behind this decline is the recent message from the US Federal Reserve. The Fed hinted that interest rate cuts may slow down, which immediately pushed the US dollar higher. When the dollar strengthens, investors tend to exit risky investments, and cryptocurrencies are usually the first to feel that impact.

Ethereum is also under selling pressure, trading near $3,217. Market indexes such as the CoinDesk 5 Index and the CoinDesk 20 Index show a similar trend, both down around 3% in the last 24 hours. Overall, the market is cautious and traders are avoiding aggressive decisions.

In the derivatives market, traders are lowering their exposure and reducing leverage. The total open interest in Bitcoin futures has dropped to around $24.9 billion, signaling that traders are closing positions and preparing for more volatility. More than $600 million in long positions were liquidated in just one day, meaning traders who expected prices to rise were forced out as Bitcoin fell.

However, the options market is showing a more hopeful tone. More traders are buying call options than put options, meaning some still believe a rebound could be on the way. The zone around $100,000 is becoming a strong support area, as many trades are concentrated around that price. If Bitcoin holds above this level, it could help stabilize the market in the short term.

Altcoins continue to feel heavier selling pressure than Bitcoin. XRP dropped by nearly 5%, and Ethereum fell around 3.5%. The altcoin season index is now down to 22/100, signaling very low demand for altcoins and weak confidence among traders.

Yet, AI-related tokens are outperforming the rest of the market. Fetch AI (FET) surged more than 23%, and NEAR gained around 22%, supported by strong trading activity on exchanges like Binance and KuCoin. Investors appear to be shifting their funds into AI projects even while most tokens are declining.

Bitcoin remains near $99,984, roughly 20% below its recent all-time high, but its long-term trend remains healthy. With 19.94 million BTC already in circulation out of a fixed supply of 21 million, Bitcoin’s scarcity continues to be a major value driver. Short-term indicators show weakness, and momentum looks bearish, but technical indicators like the RSI show Bitcoin is close to an oversold zone, suggesting potential recovery. Long-term averages still point to strength , meaning the broader bullish outlook remains intact if Bitcoin can hold the $100,000 support level.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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