Bitcoin, the world’s most popular crypto, has cratered in recent days. During the last week alone, Bitcoin has lost over 8% of its value.
At this moment, Bitcoin is trading under $95,000.
Bitcoin started 2025 at around $93,000, so it hasn’t moved much if you are looking today.
Last month, Bitcoin hit an all-time high of around $126,000 – so if you bought around that time, you probably are holding a loss in value.
Jake Kennis, Senior Research Analyst at Nansen, says there are various reasons for Bitcoin’s recent decline.
“The selloff is a confluence of profit-taking by LTHs, institutional outflows, macro uncertainty, and leveraged longs getting wiped out. We will be looking at the weekly close in just a few days to get a better confirmation of where we might go from here, says Kennis. “What is clear is that the market has temporarily chosen a downward direction after a long period of consolidation/ranging.”
In years past, Bitcoin typically catches a bid in Q4. October and November have particularly stood out as strong months in this quarter. Just not this year, or at least so far.
While spot Bitcoin ETFs have seen a rush to the exits, with one day seeing around $867 million bail, the soft Bitcoin market may be more aligned with the overall market sentiment as concerns rise about a bubble, specifically with AI investments, and questions persist as to whether or not the Fed will cut rates again in December.
While Bitcoin is experiencing a risk-off moment, in the past, these have been followed by a resurgence of interest.
At some point, the bulls will return, validating Bitcoin as a trading vehicle if you can time the market.