Bitcoin News Today: Investors Turn to AI as Bitcoin Plunges Past $100K

Bitcoin's price has plunged below $100,000 for the first time since June 2025, intensifying a bearish correction that has erased over $1 trillion in market value since October's record highs. The cryptocurrency, which reached $126,000 in early October, now trades near $93,000, with analysts debating whether the selloff signals a broader "mini bear market" or a temporary liquidity-driven pullback according to data. Digital asset products have seen $3.2 billion in outflows over three weeks, with U.S. spot Bitcoin ETFs losing $1.1 billion in a single week-the fourth-largest weekly outflow on record according to reports.

The decline has prompted traders to reassess risk exposure, with many seeking alternative strategies amid heightened volatility. JEXAI, a new AI-powered crypto asset management platform, has emerged as a potential solution, touting AI-driven smart contracts that optimize energy use, multi-currency allocation, and risk control. The platform claims to reduce electricity costs by 60% while automating computing power distribution across cryptocurrencies like Bitcoin and Ethereum, aiming to generate passive income for novice and seasoned investors alike.

Federal Reserve policy uncertainty looms large over the market. A potential rate pause in December could trap Bitcoin in a $60,000–$80,000 range through year-end, according to XWIN Research Japan, as falling cut expectations drain liquidity from risk assets. The Fed's hawkish stance, compounded by delayed economic data, has exacerbated investor caution.

Bitcoin's futures-to-spot basis turned negative for the first time since March, signaling traders' reluctance to deploy leverage according to analysis.

Institutional demand has also waned. Strategy (MSTR) bucked the trend by purchasing 8,178 BTC ($835.6 million) at $102,171 per coin, its largest acquisition since July. However, broader ETF outflows-$1.8 billion last week alone-reflect a shift in institutional positioning according to market analysis. BlackRock's iBIT and Fidelity's FBTC saw steep declines in assets under management, while stablecoin reserves hit a record $72.2 billion, suggesting liquidity remains sidelined according to reports.

Technical indicators hint at oversold conditions, with Bitcoin stabilizing near $93,000 support levels. Analysts like Edul Patel of Mudrex note increased long positions from whales and market makers below $100,000, though rebounds face immediate resistance at $95,000 according to market data. CoinSwitch Markets Desk cautions that sideways trading may persist until macro catalysts or institutional flows re-emerge according to analysis.

Despite the turmoil, some experts reject "crypto winter" fears, citing stronger market foundations from institutional adoption and regulatory progress. Yet, with leveraged positions vulnerable in a low-liquidity environment and repo rates remaining elevated according to financial analysis, the path to recovery remains uncertain. Traders are closely watching the Fed's December decision and potential rotations in sidelined liquidity to determine Bitcoin's next move.