Investments.com – Bitcoin’s drop below $100,000 has shaken one of the market’s fastest-growing rallies and raised questions: is this a routine “shakeout” or the start of a more significant fall? Last Sunday, Bitcoin dipped below $94,000, wiping out the gains made since the beginning of the year, CNBC reports. In 2025, the cryptocurrency passed several impressive milestones and set an all-time high on October 6th, exceeding $126,000, before starting to correct a few days later. From its peak, it has lost about 25%, indicating a worsening bear market. At the time of publication, BTC was trading at $95,600. Industry experts point to a two-stage decline: first, a macro sell-off, followed by forced liquidations. Nevertheless, long-term investors remain convinced that the core thesis for investing in digital assets remains: some participants still view Bitcoin as a hedge against currency devaluation, inflation, and long-term monetary easing. The turning point, according to Alessio Quaglini, CEO of Hex Trust, occurred on October 10th, when escalating trade disputes between the US and China triggered a broader sell-off of risk assets. In the following days, there was a “complete cascade of liquidations that wiped out billions in leveraged positions.” “This is a liquidity reset, not a loss of faith in the asset,” he noted. The broader crypto market is also under pressure: Ether, the second most popular cryptocurrency, has lost over 35% from its August peak of $4,954. Although tensions between the two world powers later eased, Bitcoin has yet to find support. Peter Chang, head of research at Presto Research, indicated that “thin post-slump liquidity and fears of the four-year cycle ending are key factors… even an insignificant routine trade can affect the price.” Macro factors are also putting pressure. Hopes for a Fed rate cut in December are fading, and the US government shutdown, which halted data releases, has worsened investor sentiment. According to HashKey Senior Analyst Tim San, tightening conditions have particularly affected ETFs: “Bitcoin ETFs attracted over $100 billion shortly after approval, but tightening macro liquidity has significantly slowed inflows from institutional players.” “We must honestly admit: the correction might not be over… if stocks start to fall, we could easily retest levels around $70,000 again, possibly briefly below that,” Quaglini stated. This position was supported by Jeff Mei, Executive Director of BTSE, who added that Bitcoin is still behaving like a typical risk asset, and with reassessments of AI stock valuations and doubts about rate cuts, “further downside may be warranted.” However, observers emphasize that this reset is not like previous crises. “This is not 2022—there is no credit contagion, no cascading bankruptcies, no systemic failure,” said Quaglini. “After the situation stabilizes… we still expect new all-time high prices for Bitcoin” within a 12–18 month horizon. Chang recommends that retail investors avoid trying to catch short-term fluctuations and instead adopt an averaging strategy (regular small purchases) and focus on understanding the underlying Bitcoin and Ethereum networks, rather than news headlines. San added that long-term buyers are advised to wait for a macro signal rather than a technical one: Bitcoin’s upside potential depends on a sustained easing of global liquidity. Meanwhile, Hunter Horsley, CEO of Bitwise, finds current levels potentially attractive for strategic investors.
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