Bitcoin price crash: Why did it sink to a 6-month low today? What’s happening with crypto markets?

Investors in Bitcoin are waking up to another bad morning for the world’s preeminent cryptocurrency. As of the time of this writing, the price of one token is down 6.55% in the last 24 hours to just above $95,000 per coin.

It’s a low that Bitcoin has not seen since May.

Today’s selloff continues a monthlong trend in which Bitcoin has now lost about 20% of its value. But what’s driving this most recent selloffs? Two culprits are most likely at play.

Uncertainty of Fed rate cuts

Next month, the Federal Reserve is expected to announce a decision on whether it will change interest rates. The Fed has three options: increase rates, hold rates at current levels, or cut (decrease) rates.

Until recently, Wall Street was pretty bullish about the likelihood that the Fed would cut rates in December.

When the Fed cuts rates, it’s generally seen as beneficial because rate cuts boost liquidity in markets. Increased liquidity generally prompts investors to allocate more to risk assets.

Risk assets include assets like cryptocurrencies and highly volatile stocks (such as AI-adjacent stocks lately).

So a Fed rate cut in December would boost liquidity, likely driving investors toward risk assets, including cryptocurrencies such as Bitcoin, which would likely rise in price.

But now, as NBC News notes, in recent days, traders think there is only around a 50% chance that the Fed will cut rates in December. At the beginning of November, the majority of traders thought there was a 90% chance the Fed would do so.

This uncertainty over whether the Fed will cut rates in December is likely one of the biggest factors behind Bitcoin’s fall today.

Selloff of tech and crypto stocks

Bitcoin is generally seen as a risk asset since its price is highly volatile compared to more traditionally stable assets like bonds.

But Bitcoin isn’t the only risk asset.

Many tech stocks are seen as risk assets—particularly ones operating in the AI space—because their prices can swing so widely as of late.

And as of the past day, those risky tech assets have been plummeting.

Yesterday alone, the prices of some major tech and AI-adjacent stocks dropped significantly due to both uncertainty about Fed rate cuts and growing fears of an AI bubble. Those drops yesterday included:

• Palantir Technologies Inc. (Nasdaq: PLTR): down 6.53%
• Intel Corporation (Nasdaq: INTC): down 5.23%
• Nvidia Corporation (Nasdaq: NVDA): down 3.58%
• Tesla, Inc. (Nasdaq: TSLA): down 6.64%
• Amazon.com, Inc. (Nasdaq: AMZN): down 2.71%
• Alphabet Inc. (Nasdaq: GOOG): down 2.89%

Meanwhile, those traditional tech stocks weren’t the only ones getting hit hard yesterday. As noted by CoinCentral, crypto stocks in the mining and trading space also had a pretty bad day, including:

• Bitfarms Ltd. (Nasdaq: BITF): down 17.98%
• Bitdeer Technologies Group (Nasdaq: BTDR): down 20.3%
• Coinbase Global, Inc. (Nasdaq: COIN): down 6.86%
• Gemini Space Station, Inc. (Nasdaq: GEMI): down 9.78%
• Bullish (NYSE: BLSH): down 9.85%

When investors see risk asset stocks declining sharply—particularly ones operating in the crypto space—it may drive an outflow of investment in cryptocurrencies themselves as they seek safer and more stable investment assets to park their money in.

Bitcoin has had a chaotic 2025

Being an investor in Bitcoin has certainly had its highs and lows this year. The token began trading just above $94,000 per coin just after the new year. It got a crypto-friendly The President administration boost around the time of President The President’s inauguration later that month.

But after trading above six figures for the first few months of the year, Bitcoin took a hit, along with most of the stock market, thanks to President The President’s Liberation Day tariffs, which injected more uncertainty into investors’ minds than they had experienced in a long time. 

By April, Bitcoin had fallen to just above $76,000.

However, the crypto recovered nicely since then, steadily rising until it hit an all-time high of over $126,000 in October. But since then, Bitcoin has steadily declined.

And after its recent fall, Bitcoin is now up only about 2.8% for the year. 

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