Bitcoin Dips Below $100K Amid Bond Volatility, ETFs Rebound

Bitcoin’s price action this week demonstrated significant volatility, with the cryptocurrency falling below the psychologically important $100,000 threshold on both Tuesday and Friday. The digital asset declined 2.7% in the past 24 hours and has lost 9.1% since the same time last week, marking one of the more substantial weekly pullbacks in recent months. This price pressure came amid what was shaping up to be one of the worst weeks for share redemptions since Bitcoin ETFs launched last January.

However, Thursday brought a notable reversal in fund flows as Bitcoin ETFs attracted $239 million in inflows, breaking a six-day losing streak that had concerned market participants. According to Bitunix analyst Dean Chen, this flow profile suggests rotation rather than exit, indicating that investors are redistributing exposure while maintaining risk appetite. The data shows capital continues to enter the space despite short-term price pressure, with the net inflow serving as a bullish counterpoint to the price decline.

Deutsche Bank analyst Jim Reid identified U.S. bond market volatility as the primary driver behind the current market pessimism. In analysis shared with Decrypt, Reid detailed how Wednesday saw a sharp yield sell-off following solid ADP employment data and better-than-expected ISM services figures. This move was completely reversed yesterday after a weak U.S. job cuts release, with the 10-year Treasury yield falling -7.6 basis points—its biggest daily decline since the U.S.-China trade escalation on October 10.

The bond market volatility triggered a global risk-off move that saw the S&P 500 drop -1.12% and the Nasdaq fall -1.90%. The October 10 reference point carries particular significance, as that date saw U.S. President Donald Trump threaten to hike tariffs on goods imported from China by 100%, causing panic that sent crypto prices crashing and wiped out a record-setting $19 billion worth of crypto derivatives positions in a single day.

Market analysts are largely interpreting the current downturn as a temporary correction rather than a fundamental trend reversal. Bitunix’s Dean Chen characterized Bitcoin’s dip below $100,000 as looking ‘more like a mid-cycle shakeout than a trend reversal.’ He emphasized that with the Federal Reserve ending quantitative tightening on December 1 and having cut rates in both September and October, liquidity is gradually turning supportive again.

Chen’s analysis suggests the current pullback represents a function of leverage reset rather than fundamental deterioration. This perspective is supported by improving macroeconomic conditions that should help buoy Bitcoin’s price over the medium term. The backdrop of supportive monetary policy contrasts with the short-term bond market volatility that has driven recent price action.

Market sentiment appears to align with this cautiously optimistic view. On prediction market Myriad, launched by Decrypt’s parent company Dastan, traders remain bullish on Bitcoin’s chances, placing a 55.5% probability on the cryptocurrency’s next move taking it to $115,000 instead of $85,000. This suggests market participants see more upside potential than downside risk despite the recent price pressure.