Bitcoin fell below the $100,000 threshold on Thursday amid renewed risk-off sentiment and a tech stock sell-off.

The cryptocurrency dropped as much as 3.8% to $98,071, extending a slump that has wiped over $450 billion from the market since early October. Key institutional supporters—including large investment funds, ETF allocators, and corporate treasuries—have retreated, removing a crucial pillar that had sustained this year's rally and pushing the market into a fragile phase.

Analysts at 10X Research confirmed the crypto market has entered a bearish pattern, citing weakening ETF inflows, persistent selling by long-term holders, and tepid retail participation. Their models flagged this shift in mid-October and now indicate deteriorating investor sentiment. The firm identifies $93,000 as the next critical support level.

"Bitcoin was already under pressure from heavy spot selling and corporate hedging activity, while traders largely avoided altcoins," said Jake Ostrovskis, OTC desk head at Wintermute. "When crypto narratives fade, its correlation with traditional assets rises—that’s driving today’s move."

The pullback coincides with heightened global market volatility. Earlier this week, U.S. equities briefly rallied on news of a resolved government shutdown, but the momentum faded. Traders are reassessing Fed rate-cut expectations amid delayed key economic data releases, weighing on growth assets like crypto and tech stocks.

Derivatives markets show rising demand for downside protection. Data from Deribit, a Coinbase-owned crypto derivatives exchange, reveals surging trading volumes for protective puts with strike prices below $100K, particularly around $90K and $95K.

Though Bitcoin remains up ~5% year-to-date and over 40% since the 2024 U.S. election, momentum has notably slowed with waning institutional interest. The downturn began in early October when nearly $19 billion in crypto bets evaporated within a day—a shock that shifted market sentiment.

While calling bottoms remains uncertain, 10X Research contextualizes risks using recent history: The 2024 summer and early-2025 bear markets saw 30%-40% drawdowns. Bitcoin currently sits >20% below its 2025 peak with no signs of sustainable recovery.

In a client note, 10X cited historically significant moving averages that marked past crypto cycle inflection points: "This isn’t just bearish odor anymore—Bitcoin and most crypto-related assets are now in a confirmed bear market." The firm emphasized Bitcoin’s sustained position below long-term moving averages as a momentum deterioration signal.