Bitcoin’s Volatile Journey: From $106K Plunge to Future Prospects
The cryptocurrency market experienced a significant downturn on November 3, 2025, as Bitcoin's price plummeted below $106,000, wiping out $156 billion in global market capitalization within a single day. This dramatic sell-off was triggered by Federal Reserve Chair Jerome Powell's hawkish remarks on October 29, which dampened expectations of a December rate cut. The cascading effect led to over $1.29 billion in leveraged positions being liquidated, with meme coins and altcoins bearing the brunt of the losses. Despite this short-term volatility, the long-term outlook for Bitcoin remains bullish, driven by its growing adoption as a hedge against inflation and its increasing integration into traditional finance. As the market stabilizes, investors are eyeing potential recovery and future growth opportunities in the crypto space.
Bitcoin Plunges Below $106K as Fed Hawkishness Sparks Crypto Sell-Off
The cryptocurrency market faced a brutal reckoning on November 3 as Bitcoin collapsed below $106,000, erasing $156 billion in global market capitalization within 24 hours. Over $1.29 billion in leveraged positions were liquidated amid a cascading sell-off that hit meme coins and altcoins hardest.
Federal Reserve Chair Jerome Powell's October 29 remarks set the stage for the downturn, dousing expectations of a December rate cut with hawkish rhetoric. The CME FedWatch Tool now prices just a 69.3% probability of easing, down from 78% previously. As Treasury yields ROSE and the dollar strengthened, institutional investors raced to lock in profits across risk assets.
Market structure exacerbated the pain. Bitcoin's breach of $110,000 support triggered algorithmic selling, accelerating the descent through $106,000. The bloodletting exposed overleveraged traders who had positioned for continued rallies, particularly in speculative meme tokens.
Bitcoin Tests $103K Support as Analysts Warn of Potential Drop to $92K
Bitcoin's price action has turned precarious following the October 11 liquidation event, with the $104,000 support level failing to hold. The cryptocurrency now hovers NEAR $103,732 on Bitstamp, leaving traders to question whether this represents a final flush before reversal or the start of deeper declines.
Market structure appears damaged after BTC lost its multi-week support zone. Analysts point to the CME gap near $92,000 as a likely magnet should selling pressure persist. The NUPL indicator flashing -0.058 confirms retail traders are now underwater, compounding negative sentiment.
Altcoins mirror BTC's weakness amid macroeconomic uncertainty. 'The price is approaching the bottom of the zone where it formed its first higher low after the October rebound,' observes Daan crypto Trades, suggesting this retest could determine the next major directional move.
Bitcoin Targets Liquidity Surge Amid Central Bank Interventions
Global liquidity conditions are shifting dramatically as central banks deploy unprecedented measures. The US M2 money supply hit $22.2 trillion in September, marking 19 consecutive months of growth. While the 4.5% annual increase remains below the 6.3% long-term average, inflation-adjusted growth of 1.4% continues a 13-month upward trend.
Market participants now watch Bitcoin's correlation with liquidity indicators intensify. The cryptocurrency's recent price movements mirror gold's response to monetary expansion—a pattern last seen during peak quantitative easing eras. This resurgence of the money-supply correlation establishes Bitcoin as a macro asset.
The Federal Reserve's $29.4 billion overnight repo operation—the largest single-day injection since the dot-com era—coincided with massive PBOC interventions. These synchronized liquidity measures create a crossroads for risk assets. Treasury sell-offs signal mounting pressure in short-term credit markets, prompting investors to monitor central bank balance sheets through 2026.
Microsoft's $9.7B AI Deal with Bitcoin Miner IREN Signals Infrastructure Shift
Microsoft has inked a $9.7 billion cloud services contract with bitcoin miner IREN, marking a pivotal shift in crypto infrastructure toward AI. The five-year deal, coupled with a $5.8 billion equipment agreement with Dell for Nvidia GB300 systems, repurposes 200 megawatts of IREN's Texas facility from Bitcoin mining to AI hosting.
The economic rationale is stark: AI hosting now yields $500,000-$600,000 more annually per megawatt than Bitcoin mining—an 80% premium. Microsoft's $1.9 billion prepayment underscores urgency as CFOs grapple with capacity constraints through mid-2026. IREN plans to scale its Childress AI operations from 75MW to 200MW by late 2026.
This reallocation reflects a broader industry calculus. The hash price squeeze is accelerating what may become crypto's largest infrastructure migration, leaving Bitcoin's network security dynamics in uncharted territory.
BlackRock Expands Crypto Investment with Bitcoin ETF Launch in Australia
BlackRock, the world's largest asset manager, has launched a Bitcoin Exchange-Traded Fund (ETF) on the Australian Securities Exchange (ASX). The ETF provides regulated exposure to Bitcoin for Australian investors, eliminating the complexities of direct ownership. This MOVE aligns with BlackRock's global strategy to integrate digital assets into traditional investment portfolios.
The ETF tracks Bitcoin's spot price, offering liquidity and ease of access. BlackRock's successful U.S. iShares Bitcoin Trust (IBIT), which amassed over $98 billion in assets, underscores the potential for similar products in Australia. Steve Ead, Head of Global Product Solutions at BlackRock Australasia, emphasized the ETF's role in providing a secure, regulated gateway to Bitcoin.
Australia's robust regulatory framework has positioned it as a growing hub for digital finance. The ETF's launch reflects rising global demand for Bitcoin investment vehicles, particularly in markets with clear regulatory guidelines.
Strategy Proposes Euro STRE Sale For Bitcoin Purchases
Strategy has announced a euro-denominated preferred share sale to fund future Bitcoin acquisitions and corporate operations. The move signals continued aggressive accumulation of BTC despite mixed market sentiment.
The company plans to offer 3.5 million shares of perpetual preferred stock (STRE) carrying a 10% annual dividend, with proceeds earmarked for general purposes including digital asset purchases. This equity financing approach reinforces Strategy's commitment to its Digital Asset Treasury model under Michael Saylor's leadership.
Meanwhile, derivatives traders on Kalshi are taking opposing positions, with growing bets that Bitcoin will fail to reach $100,000 by year-end. The divergence highlights ongoing debate about BTC's price trajectory amid institutional accumulation.
