Bitcoin fell below the $100,000 mark twice in a turbulent week, losing nearly 8% and dragging the broader crypto market down by over $260 billion to a $3.51 trillion valuation.
Crypto Wrap: 'OG' Whale Dumping and US Investor Flight Blamed for Crypto's $260 Billion Contraction
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BTC Fails to Hold Key Support
In a volatile week that saw bitcoin ( BTC) slip below the critical $100,000 threshold not once but twice, the broader crypto economy experienced a significant contraction, shedding over $260 billion in value to close with a market capitalization of $3.51 trillion. This marked the first time BTC had traded under $100,000 in over four months, underscoring diminishing investor enthusiasm and an emerging bearish sentiment.
Previously, BTC had consistently rallied hard whenever it approached the $100,000 mark, reinforcing the belief in its upside potential. However, the narrative shifted this week as the top cryptocurrency failed to repeat this recovery, a drop that had been correctly predicted by bettors on platforms like Polymarket. Having started the week trading above $110,000, BTC failed to break past the $105,000 resistance since plunging to a low of $99,607 on November 4th. Consequently, it closed the week just under $102,000, registering a nearly 8% loss.
Whale Dumping and U.S. Investor Appetite
Experts and observers have offered various explanations for the sharp decline, ranging from the impact of U.S. elections to the actions of so-called bitcoin “OGs” dumping hundreds of millions of dollars worth of coins. However, a report from Cryptoquant cited the diminishing appetite of U.S. investors as the primary driver behind the downward trend in both spot and derivative markets. This assessment is supported by heightened outflows recorded in spot bitcoin exchange-traded funds (ETFs).
The negative trend was widespread across the market, with most altcoins logging steep declines in the seven days ending on Nov. 8: Ethereum ( ETH), which slipped below $3,200 on Nov. 4, closed the week 13% lower, leading several high-cap altcoins with double-digit losses. BNB plunged to $900—its lowest price since Sept. 11—before recovering to close at $993 and reclaiming its number four position.
Despite this, it still ended the week 9% down, a loss mirrored by XRP, which closed at $2.27. Solana, LINK, and BCH were also among the high-cap altcoins with double-digit losses.
Privacy Coins Defy the Trend
Bucking the market downturn, privacy coins again trended against the market. zcash (ZEC) and dash ( DASH) led the charge, with ZEC rallying to a weekly high of just under $750 before reversing to close around $580, translating to a substantial gain of over 40% in seven days. DASH, meanwhile, closed 20% higher at $82, and DCR was up 32% in the same period. The only other top 20 digital asset to register double-digit gains was WBT.
FAQ 💡
- Why did bitcoin drop below $100K this week? BTC fell due to weak investor sentiment and reduced U.S. market appetite.
- Which altcoins were hit hardest by the downturn? Ethereum, BNB, XRP, Solana, LINK, and BCH all posted double-digit weekly losses.
- Did any cryptocurrencies gain value during the crash? Privacy coins like Zcash, Dash, and DCR defied the trend with strong weekly gains.
- What role did U.S. investors play in the decline? Cryptoquant reports show major ETF outflows and fading interest from U.S. traders.
