Bitcoin falls below $110,000—Is the market really entering a bear phase?

A few days have passed since last week’s flash crash. BTC plunged from $116,000 to $104,500, briefly approaching a low of $102,000. ETH ($3,706) and SOL ($175) were also caught up in the drop, with altcoins across the board declining.

On-chain Screams: $1.189 Billion Liquidated in 24 Hours

The numbers revealed by Coinglass say it all. In the past 24 hours alone, $935 million in long positions were liquidated. Among them, a single ETH-USD position on Hyperliquid reached $20.42 million in liquidations. The fear index dropped to 22, putting the market in a state of extreme panic.

Spot ETF Reversal: Institutional Pullout Accelerates

US BTC spot ETFs saw massive net outflows over the past week. Except for a net inflow of $102.58 million on October 14, almost every day recorded outflows. The largest outflow day (October 1) exceeded $536 million, hitting a new low since August. ETH spot ETFs fared even worse, with net outflows of over $428 million on October 13. Institutional money is fleeing in earnest.

Industry Heavyweights Turning Bearish

Even BitMine Chairman Tom Lee stated, “This bubble has already burst.” DeFiance Capital founder Arthur also vented his anger, saying, “This has set the entire crypto industry back significantly.” The once-booming DAT (Digital Asset Treasury) craze has now vanished without a trace.

Macro Headwinds: Banking Woes Spread

Bad loan issues at two US regional banks triggered the turmoil. In just one day, the market capitalization of 74 major US banks dropped by more than $100 billion. The “just sell for now” mentality spread throughout the markets, leading to a sell-off in both stocks and crypto assets.

So, Is the Bear Market Confirmed?

Experts are divided. Chris Burniske of Placeholder VC is pessimistic, stating, “If BTC falls below $100,000 and even down to $75,000, I might consider buying again.” On the other hand, Arete Capital is more hopeful: “It will take 40–60 days to form a bottom, and we should see constructive results by mid-November.”

According to technical analysis by glassnode, BTC remains above its 365-day moving average ($99,900). If this level is breached, a deeper correction risk awaits.