Bitcoin has experienced a significant downturn, falling 20% from its all-time highs within a month and entering bear market territory—this decline has sparked concerns about a potential nightmare scenario for the bitcoin price. The bitcoin price, which reached a high of $126,000 per bitcoin in October, has now fallen below $100,000 this week, although it has seen a slight recovery—partially due to U.S. President Donald Trump’s strong warning regarding China. Nevertheless, the overall crypto market is still down by $900 billion compared to its early October valuation of $4.3 trillion. As traders prepare for the stock market to mirror bitcoin’s decline, the bitcoin price has fallen below $100,000—prompting even the most dedicated bitcoin advocates to reconsider their beliefs. The bitcoin price has dropped below $100,000 per bitcoin, causing significant ripples across the bitcoin and crypto market. Researchers have revealed the bleak outlook for the bitcoin market, stating in an interview with The Block that they foresee bitcoin plummeting to $72,000 before the year concludes.
“The 365-day moving average has acted as the ultimate support level so far this bull cycle, and was one of the last signals triggered as the bear market began in December 2021–January 2022,” researchers stated in a report this week. “A failure to reclaim the 365-day moving average swiftly may lead to a significantly larger correction in bitcoin’s price.” The bitcoin price experienced a “flash crash” on October 10, plummeting over 10% within just a few hours. This sudden drop has shaken the confidence of many recent bitcoin buyers, particularly those following Michael Saylor’s strategy and the bitcoin exchange-traded funds spearheaded by BlackRock.
“Slowing bitcoin flows are a major factor influencing the market’s current direction. Demand from digital asset treasuries like Strategy, that supported crypto prices through the summer, is decelerating,” Thomas Perfumo said. “Crypto ETFs have seen notable outflows, even as they appeared bullish in the preceding months of volatile price movements. As the market began to stabilize following the October 10 liquidation event, this recent ‘reset’ has undoubtedly further diminished short-term risk tolerance.” Bitcoin bulls have adjusted their price targets this week as the cryptocurrency has dropped below $100,000, displaying limited signs of a rebound thus far.
Stablecoins “scaling here much faster than anyone would have expected,” according to Cathie Wood, who cited this as her rationale for lowering her “$1.5 million by 2030″ bitcoin price target by $300,000. “Stablecoins are usurping part of the role that we thought bitcoin would play [in emerging markets],” Wood stated during an interview. Earlier this week, analysts led by Michael Novogratz, revised their end-of-year target for bitcoin, reducing it from $185,000 to $120,000. Bitcoin has entered a new “maturity era,” in which “institutional absorption, passive flows, and lower volatility will dominate,” they stated.