The cryptocurrency market has experienced a significant correction: the price of Bitcoin has dropped by more than 15% in recent weeks, falling below the $100,000 mark. Analysts have differing views on the current situation.
This is reported by Finway
Reasons for the Market Decline
Among the main factors contributing to the decline, experts highlight:
- Weak institutional demand
- Negative dynamics of Bitcoin ETFs
- Asset sales by large long-term holders
- Macroeconomic uncertainty
- Geopolitical risks
The fear and greed index has dropped to its lowest levels since April 2025, signaling pessimistic investor sentiment.
Experts’ Opinions on the Future
Analysts’ opinions are divided. The pessimistic scenario suggests a possible drop in Bitcoin to $72,000 if it fails to hold the $100,000 level. Some analysts even predict a deeper correction.
“The entire narrative of ‘store of value’ or ‘hedge against inflation’ was invented by maximalists,” says financial analyst Jacob King.
At the same time, optimistic forecasts point to the potential for recovery. Experts at Santiment note that the market could turn around when major players start accumulating assets while small investors capitulate.
Binance co-founder Yi He reminded that with every drop in Bitcoin, people have said, “Crypto is dead.”
“In every cycle, someone exits the market, someone leaves in tears, and someone ultimately laughs,” she noted.
Bitwise’s Chief Investment Officer Matt Hougan believes that there will not be a full-fledged “crypto winter” this time, and the market is capable of recovering by the end of the year.
Most experts consider global liquidity and macroeconomic processes, especially actions by the U.S. Federal Reserve, as key factors.