Bitcoin’s price fell below the $100,000 mark on November 7th for the first time since June, with analysts citing hawkish Fed signals and tightening liquidity conditions as key drivers. This marks a significant drop in the market this month, with Bitcoin’s value shedding over 18% overall. The decline follows comments from the Federal Reserve suggesting delayed rate cuts and slower balance sheet runoff, leading to pressure on liquidity across various asset classes. Total crypto market capitalization fell by 1.9% to $3.35 trillion, while open interest dropped sharply as leveraged positions are being unwound. The article details the reasons behind this drop, analyzing how the Fed’s ‘higher for longer’ stance is affecting Bitcoin and the broader crypto market. Bitcoin currently trades around $99,420, with Ethereum (ETH) also suffering losses of nearly 4% in 24 hours to reach around $3,210. The slump coincides with comments from Fed officials at the FOMC meeting signaling potential delay for rate cuts and a slower easing cycle. This shift has shaken investor confidence and led to increased caution across financial markets. The impact on crypto is evident in funding rates dropping below 5% annualized on Bitcoin futures, along with the drop in open interest to $24.6 billion from $26 billion last week. Additionally, CoinGlass data reveals a significant $680 million in liquidations over the past 24 hours, where 67% of losses were attributed to long positions. This suggests a general shift away from leveraged trading as investors respond to these shifts in market conditions. While altcoins are also underperforming, AI-linked tokens like FET and NEAR have shown notable gains with their value increasing by 17% and 15% respectively. However, analysts caution that these gains might be short-lived if Bitcoin’s downward trend continues. The future of Bitcoin now hinges on whether it can maintain support at the $97,500-$99,000 zone, with a sustained recovery above $102,000 required to signal renewed buyer confidence. Until then, market volatility and caution around liquidity remain key factors shaping investor sentiment.