**Bitcoin Price Crashes Below $100,000 Despite U.S. Government Reopening**
The Bitcoin price has dropped below the psychological $100,000 level for the second time in as many weeks. This latest price crash comes despite the reopening of the U.S. government, which many expected to act as a bullish catalyst for the markets.
## Bitcoin Price Falls Below $100,000
TradingView data shows that BTC has crashed below $100,000 today, reaching a low of $99,300 and causing its market cap to fall below $2 trillion. This price drop followed the U.S. government reopening after President Donald Trump signed a short-term funding bill. Contrary to expectations, the reopening has proven to be a “sell-the-news” event, despite earlier forecasts that it would boost market sentiment.
Earlier this week, the Bitcoin price surged to as high as $106,000 after the Senate passed the bill, in anticipation of the longest government shutdown ending. However, this optimism was short-lived as significant selling pressure set in.
## Institutional Selling and ETF Outflows
As reported by CoinGape, Bitcoin has faced substantial selling pressure, with institutional investors among those offloading assets. Bitcoin ETFs have recorded eight days of net outflows in the past eleven, including massive outflows of $577 million and $558 million on November 4 and 7, respectively.
Additionally, research firm 10x Research noted that buyers are not stepping in, which has kept the Bitcoin price flat despite several potential bullish catalysts. The firm also claimed the crypto market has entered a mini-bear phase, citing on-chain indicators.
## Uncertainty Surrounding December Rate Cut
Another major contributor to the current bearish sentiment is uncertainty around a Federal Reserve rate cut in December. CoinGape reports that the odds of a December rate cut have dropped to new lows, with a cut no longer certain. Notably, the previous two rate cuts this year sparked significant rallies for Bitcoin, pushing the flagship cryptocurrency to new all-time highs just before the Fed lowered rates in September and October.
With another rate cut now uncertain, many market participants may be waiting on the sidelines until there is clarity following the December FOMC meeting.
## Massive Liquidations Hit Long Positions
The ongoing crash below $100,000 has led to significant liquidations, particularly among long positions. CoinGlass data reveals that $140 million was liquidated in the last hour alone, with $138 million being long positions. Over the past 24 hours, total liquidations have reached $532 million, $411 million of which were long positions.
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*Stay tuned for further updates as the situation continues to develop.*
https://bitcoinethereumnews.com/bitcoin/bitcoin-price-falls-below-100k-despite-u-s-government-reopening/
