Bitcoin has officially entered a bear market, plummeting over 20% since its peak in October 2025, wiping out billions and raising concerns across the financial landscape. This significant slide, now below $94,000, has triggered widespread impacts on other major cryptocurrencies like Ethereum, Solana, Dogecoin, and Ripple (XRP). Analysts and market observers are closely analyzing liquidity trends and inflows from institutions as Bitcoin’s volatility continues to increase. 💰 The market’s downturn highlights the influence of institutional investors in driving price shifts, with ETF inflows stalling and derivatives liquidations intensifying. According to Capital Markets Commentator Kobeissi Letter, “Bitcoin officially enters bear market territory, now down -20% since its record high seen on October 6th.” 📉 The effects are wide-ranging, including a significant drop in Bitcoin’s market value (over $640 million), leading to volatility across the crypto sphere. While XRP offers a contrasting performance with a minor increase, other major cryptocurrencies are bearing the brunt of this bearish trend. Exchange reserves, meanwhile, have shown signs of increased sell pressure as institutional responses remain cautious and hesitant.
The bear market’s long-term implications, including potential shifts in liquidity management and trading strategies, are being closely scrutinized by industry experts. Historical patterns from previous halving cycles offer some insights, but the current landscape presents unique challenges for Bitcoin, requiring careful consideration of both historical precedents and the substantial weight of institutional involvement.