Bitcoin has lost about 25% since its October high, in signs of a deepening bear market. Bitcoin fell below $95,000 on Friday, with nearly all its gains so far this year getting wiped out. The cryptocurrency has hit a few stunning milestones in 2025. It rose to an all-time high crossing $126,000 on Oct. 6 before sliding just a few days later.
Industry experts point to a two-stage downturn: an initial macro-driven sell-off, followed by forced liquidations. “This is a liquidity reset, not a loss of belief in the asset,” he said. Hopes for a Federal Reserve rate cut in December are fading, with the U.S. government shutdown that put economic data releases on hold also denting sentiment. “Bitcoin ETFs attracted over USD 100 billion shortly after approval, but the tightening of macro liquidity … has slowed institutional inflows significantly,” he said. In fact, that capital is now on its way out, Sun said. “We have to be honest: this correction may not be finished … if equities roll over we could easily retest the low $70Ks, maybe briefly below,” said Quaglini. This turning point, said Alessio Quaglini, CEO of digital asset solutions company Hex Trust, came on Oct. 10, when renewed U.S.-China trade tensions triggered an immediate sell-off in broad risk assets. Chung said retail investors should avoid trying to time short-term swings, while suggesting to take the dollar-cost-averaging approach, or buying small amounts over time, similar to systematic investment plans, and focusing on understanding the underlying bitcoin and Ethereum networks rather than trading headlines.
Beyond bitcoin, the broader crypto complex has also come under pressure. The second most popular cryptocurrency, ether, has lost over 35% from its August high of $4,954. Noting the macro backdrop, “Bitcoin’s upside, he said, hinges on global liquidity turning sustainably looser.” Sun added that long-term buyers should wait for a macro signal, not a technical one. Hunter Horsley, CEO at asset management firm Bitwise meanwhile, sees current levels as potentially attractive for strategic investors. “A way of looking at prices right now is that it’s a reasonable entry point … the setup is quite constructive indeed,” he said, noting that Bitwise saw more clients investing in in crypto just the past quarter than ever before in the seven year history of the company. “Once conditions stabilize … we still expect bitcoin to make new highs” over a 12 to 18 month horizon. This is not 2022 — there’s no credit contagion, no cascading insolvencies, no systemic failure, Quaglini said.
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