Bitcoin Drops Below $98k, as Liquidations Hit $1 Billion

Bitcoin fell below US$98k while Ethereum and XRP experienced significant declines of around 9%, signalling broader market weakness despite positive regulatory developments.
The Fear and Greed Index dropped to 16 (Extreme Fear), with over 235k traders liquidated and US$1 billion in total losses across 24 hours.
Analysts attribute the crash to long-term holders selling after failing to capitalise on historically strong October-November seasonality and anticipated year-end tax repositioning.
Some analysts cite Fed rate concerns, while macro strategists predict an upcoming liquidity surge from resumed government spending and quantitative tightening reversals.

The crypto rollercoaster continues, with Bitcoin (BTC) dipping below US$98k (AU$149.8k). At the time of writing, BTC traded at US$97,199 (AU$148,677), down over 4% on the weekly chart.

Other assets have seen even larger drops, like Ethereum (ETH), which is down 9% in the past 24 hours, and XRP has seen a similar loss despite a phenomenal exchange-traded fund (ETF) start.

Fear has a firm grip on markets, with the Fear and Greed Index at 16 in Extreme Fear territory. Data from Coinglass shows that the past 24 hours have seen 235,331 traders liquidated, with around US$1 billion (AU$1.53 billion) wiped out.

The market crash comes despite positive developments around the US government shutdown being lifted and raised expectations that the US Securities and Exchange Commission (SEC) could approve more crypto ETFs.

However, traders are concerned that the US Fed may not cut interest rates again in its last meeting this year.

Once viewed as a lock, the odds of a December rate cut have collapsed to a coin flip, down from ~95% just a month ago. Everyone priced in certainty, and now they’re getting punished for it.
Delayed cuts mean stickier real rates, slower liquidity release, and a far tougher… pic.twitter.com/kawuB1pezi
— David Alexander II (@Mega_Fund) November 13, 2025

Related: Scammers Exploit Australia’s Cybercrime Hotline to Impersonate Police and Steal Crypto

Analysts React to Market Correction

Analysts have suggested the current conditions are being driven by long-term holders selling.

CFA and VP of Research at Fidelity Digital Assets, Chris Kuiper, said in a post on Crypto Twitter that with Bitcoin lagging behind gold and stocks, “people are getting tired”.

Everyone was expecting a euphoric end to the 4-year cycle and was waiting to sell into the historically strong seasonality of October and now November.

Chris Kuiper

As this failed to materialise, the analyst said “long-term holders are looking to make year-end tax and positional changes, calling it a day with the gains they already have.”

At the same time, macro strategist Raoul Pal sees the broader market setting up for a very different dynamic: a powerful, multi-month liquidity wave as US government spending resumes, quantitative tightening winds down, and new funding tools are deployed to ease year-end pressures.

So now the US Gov has reopened, what’s next?
Expect a few days for TGA spending to begin to significantly add to liquidity and should persist for several months.
Obviously, QT ends in Dec and the balancesheet will crawl higher.
We should see the dollar begin to weaken again.…
— Raoul Pal (@RaoulGMI) November 13, 2025

He also sees regulatory shifts – like SLR adjustments and progress on the CLARITY Act – alongside global stimulus as catalysts that will “super-heat” the economy into the mid-terms.

This is the Liquidity Flood… the spice must flow.