Bitcoin Dips Below $100,000 Amid Profit-Taking and Regulatory Uncertainty
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Bitcoin experienced a sharp weekend pullback, dropping below the psychologically important $100,000 level for the first time in weeks as traders engaged in widespread profit-taking.
By Sunday afternoon, the largest cryptocurrency was trading around $98,200, representing a roughly 8% decline from its mid-week peak above $108,000. The move dragged the broader crypto market lower, with Ethereum falling nearly 10% and total market capitalization shedding more than $300 billion in just a few days.
Analysts attribute much of the downturn to technical factors and seasonal dynamics. After an explosive post-U.S. election rally fueled by optimism over potential pro-crypto policies from the incoming Trump administration, many retail and institutional holders appear to be locking in gains before year-end tax considerations kick in.
“Healthy corrections are part of any bull market,” said Vijay Ayyar, head of international markets at CoinDCX. “We’ve seen incredible momentum, but profit-taking around round numbers like $100,000 is classic behavior.”
On-chain data supports this view. Glassnode metrics show a surge in coins moving to exchanges over the past 48 hours, a common precursor to selling pressure. Long-term holders, however, remain largely unmoved, with the proportion of supply dormant for over a year near all-time highs.
Speculation around a U.S. strategic bitcoin reserve—one of President-elect Donald Trump’s campaign talking points—has quieted somewhat as transition details emerge. While several crypto-friendly nominees have been floated for key regulatory roles, concrete policy proposals are unlikely before late January at the earliest.
This vacuum has allowed broader risk-off sentiment to influence digital assets. The correlation between bitcoin and the Nasdaq 100 has risen sharply in recent weeks, meaning crypto is increasingly behaving like a high-beta tech play rather than an independent store of value.
Institutional participation, however, shows few signs of waning. Spot bitcoin ETFs recorded modest inflows on Friday despite the price drop, led by BlackRock’s IBIT and Fidelity’s FBTC products. Corporate treasuries continue to accumulate, with the latest filings revealing several smaller public companies adding bitcoin to their balance sheets.
Options markets are pricing in elevated volatility through the end of the year, with implied moves of 12–15% in either direction over the next two weeks. Many traders are positioning for a potential rebound once tax-related selling exhausts itself.
Longer-term bulls remain undeterred. “The macro setup—potential regulatory tailwinds, ongoing monetary debasement concerns, and institutional adoption—hasn’t changed,” argued Lyn Alden, an independent macro strategist. “Dips like this are buying opportunities in a structural uptrend.”
For now, though, caution prevails in the crypto community as participants await clearer signals from Washington.
