Bitcoin News Today: Bitcoin’s Plunge Below $96K Sparks Concerns Over a Bear Market Resurgence Similar to 2024

Bitcoin Drops Under $96K, Wiping Out 2025 Profits as Bearish Mood Intensifies

On Friday, Bitcoin (BTC) slipped beneath the $96,000 mark, breaching vital support and erasing all its 2025 gains as both institutional and retail interest in the cryptocurrency diminished. The downward momentum picked up after BTC failed to maintain its position above $100,000—a level that had served as a psychological and technical base since June. This breakdown led to a wave of liquidations, with HTX alone seeing over $44 million lost in single positions, further fueling the prevailing bearish outlook, which was already highlighted by

from U.S.-listed ETFs on Thursday.

The sell-off rippled through the broader crypto market, with

(ETH) and both trading below $3,200 and $2.30, respectively. The total value of the crypto market contracted by 5.4% in a single day, dropping to $3.36 trillion, as investors sought safer assets amid global economic uncertainty. Institutional investors, who had fueled Bitcoin’s earlier rally this year, have now pulled a cumulative $59.34 billion from spot ETFs, with in just one day. Meanwhile, retail interest in XRP remains weak, with futures open interest hovering around $3.78 billion, barely recovering from November’s lows .

On-chain indicators further support the bearish trend. CryptoQuant’s Bull Score Index, which measures market optimism,

, reflecting a sharp downturn in investor confidence. Over the last month, long-term holders (LTHs) have sold off 815,000 —the largest amount since January 2024—adding to the selling pressure as spot demand falters. The 365-day moving average at $102,000 now stands as a major psychological resistance; could hasten a deeper market correction.

Technical analysis points to a fragile situation. On daily charts, Bitcoin has established a “lower high–lower low” pattern,

that had been supported by the 50-week SMA since September 2023. Short-term holders are now facing losses nearing capitulation at 12.79%, and the next significant support levels are at $93,500 and $85,000. , analysts caution that a retest of the 2024 bear market lows could follow.

Despite the negative trend, some institutional investors remain optimistic.

—last week, increasing its total to 649,870 coins valued at $61 billion. However, critics such as Jim Chanos and Peter Schiff have questioned the company’s strategy, warning that relying solely on Bitcoin’s price appreciation without generating revenue could threaten its solvency. The company’s stock has , now trading at 1.19 times its net asset value.

The bearish momentum is further intensified by

, approaching levels last seen in early March, and a near-complete lack of retail buying. While some analysts, such as Wintermute, believe Bitcoin’s lag behind the Nasdaq—which is up 21.86% in 2025 compared to BTC’s 2.96%—could indicate a market bottom is forming, leaves it exposed to further declines until macroeconomic risks subside.