Bitcoin struggled today because there was nothing strong enough to push the price higher. Buyers could not defend the ninety five thousand dollar level, and once that broke, sellers came in fast. The entire crypto market slipped almost two percent and was hanging just above three point two trillion dollars, but the mood felt tired and heavy.
Sentiment across the market was extremely fragile. The fear and greed index plunged to fourteen, which is deep in the extreme fear zone. This kind of reading usually appears only during the worst phases of past bear markets. It shows that even long term holders are starting to feel nervous.
Altcoins suffered under this pressure as well. Many spent most of the day in the red, and by the time Asia opened, several major tokens had already seen sharp losses.
Why is the Bitcoin price down today?
Bitcoin has been falling mostly because traders were already worried after it dropped below one hundred thousand dollars a few days ago. The break of $95,000 added to that fear. But the biggest push came from outside crypto. President Trump supported a Senate bill that would allow tariffs of up to five hundred percent on goods from countries that continue trading Russian energy. This is not a direct attack on crypto, but it does raise the risk of a global trade fight. That kind of uncertainty usually hurts all risk assets, including Bitcoin.
Conditions in the United States also added more pressure. Hopes of a rate cut in December have collapsed over the past two weeks. At the start of the month, chances were above eighty percent. Now they sit around forty percent. Federal Reserve officials have repeated again and again that rates may stay high for longer. Federal Reserve Vice Chair Jefferson recently repeated this view, and it drained whatever optimism was left in the short term.
High rates usually make safer investments more attractive. They also pull liquidity out of markets, and crypto has felt that pain clearly. The dollar has strengthened because of this environment, and money has flowed away from risky assets.
The long government shutdown in the United States also added uncertainty. The shutdown lasted forty three days and blocked the release of important economic data. It also froze activity at regulators like the SEC and the CFTC. With no fresh information, investors and policymakers were left in the dark. This has made everyone more cautious, even after the shutdown ended on November twelfth.
Kyle Rodda from Capital dot com said Bitcoin is sending a worrying message. He pointed out that Bitcoin often acts as an early warning sign for the rest of the market. Losing all year to date gains suggests that appetite for risk is disappearing quickly. Even though the weekend drop was recovered partly, the overall twenty six percent fall from the high meets the basic definition of a bear market. That alone has made many traders uneasy.
Institutional demand has also weakened at the worst possible moment. The twelve spot Bitcoin ETFs in the United States have seen more than two point three billion dollars in outflows over the past two weeks. This steady exit has removed a major source of buying pressure that previously kept the rally alive. If these outflows continue, Bitcoin may remain under pressure throughout the week.
Liquidations added even more weight. Roughly two hundred forty three million dollars worth of futures positions were wiped out within twenty four hours. Most of that came from long positions. When so many leveraged positions get closed, it can accelerate a decline very quickly.
Now traders are trying to understand where Bitcoin could go next. The ninety five thousand dollar level is seen as important. Bitcoin broke below it several times today. Unless buyers can recover this level strongly, control will likely stay with the sellers. If bulls manage to push the price back above ninety five thousand dollars, the next big focus will shift to one hundred thousand dollars. Regaining that level could restore broader confidence.
Some traders think the area between ninety four thousand and ninety five thousand dollars could act as a short term accumulation zone. A few signs of buying have appeared there, but conviction still feels weak. The MVRV ratio suggests that the current level may offer opportunity for short term buyers, but whether that leads to a bounce is unclear. Bitcoin is also filling a CME gap around ninety two thousand dollars. Historically, the market often stabilises after these gaps are filled.
On the liquidation heatmap, there is a key zone right below ninety four thousand dollars where many long positions were wiped out. This pocket could turn into a short term support area as some traders look to re enter after being forced out. Conditions now point to a lot of movement between ninety two thousand and ninety six thousand five hundred dollars as buyers and sellers struggle for control.
If buyers show up around ninety three thousand dollars and defend it strongly, the chance of reclaiming ninety five thousand dollars becomes more likely. That would be the first real sign of strength after today’s drop. At the moment, Bitcoin is trading just above ninety three thousand five hundred dollars and is down around one percent for the day.
Altcoins had a mixed day. Their combined market cap jumped from one point two five trillion to one point three three trillion but then gave up almost all those gains. Ethereum traded between three thousand and three thousand two hundred dollars before settling near three thousand one hundred twenty seven dollars, slightly lower on the day. Other major altcoins like BNB, Solana and Cardano slipped by one to two percent. XRP was one of the few coins that moved higher with a small gain.
Some altcoins performed notably better. Uniswap climbed more than six percent. Bitcoin Cash and Ethena also posted solid gains. But overall sentiment remained divided. Some analysts believe the total altcoin market may be nearing a major breakout that has been forming for almost eight years. Others argue that this is still the weakest altcoin cycle in history, with little sign of real recovery.
The altcoin season index sits at thirty three, which signals that most investors remain cautious. A true altcoin season usually begins only when the index rises above seventy five.