Bitcoin’s Plunge: $1 Trillion Cash Hoard Fuels Short-Term Liquidity Tightness

Bitcoin experienced a dramatic drop to $98,892 on November 4th, 2025, before rebounding to $103,561 by day’s end. This significant plunge of almost 19% stems from the US Treasury’s $1 trillion cash hoard draining market liquidity and triggering short-term funding stress. A potential government spending spree following a mid-November deal could reverse this trend, ushering in a final dip before a bullish surge.