Bitcoin Erases 2025 Gains, Analyst Warns of Fragile Market
Bitcoin has recently experienced a significant downturn, erasing all gains from 2025. The cryptocurrency now trades below $93,000, a level it hasn’t crossed in nearly seven months. This decline has raised concerns among analysts about the market’s fragility.
Key Market Dynamics
As of Monday, Bitcoin’s trading price was reported at $92,123, reflecting a 2.3% drop in the past day and a staggering 13% decrease over the past week, according to data from CoinGecko. This market fluctuation coincides with various underlying issues, including:
- Breaking below the 50-week moving average
- Bearish sentiment around the potentially delayed four-year cycle
Critical Support Level
The $92,000 threshold serves as a critical support level for Bitcoin. Analysts from QCP Capital, a crypto trading firm based in Singapore, noted that this level had acted as a lower bound in late 2022 and early 2023. Currently, Bitcoin’s proximity to this support raises important questions about its future trajectory:
- Will it break below this critical level?
- Is there a potential for a short-term technical bounce?
Market Liquidity and Economic Uncertainty
Despite the potential for a short rebound, analysts caution that dense overhead supply may limit any recovery efforts. Recent data indicates that Bitcoin trading volume has surged to $114 billion, more than doubling in a single day. Liquidations in the Bitcoin derivatives market reached about $335 million, contributing to total market liquidations of $725 million over the last 24 hours.
The recent end of a 43-day U.S. government shutdown has yet to restore investor confidence, and macroeconomic uncertainties continue to loom large. As a result, many market users predict that Bitcoin could drop to as low as $85,000 soon. A survey on the prediction market Myriad shows a 63% likelihood of Bitcoin reaching that level.
Understanding the Four-Year Cycle
Bitcoin’s price history is often influenced by its halving events, which occur approximately every four years. These events typically lead to significant price drawdowns about 12 to 18 months after a halving. Following the April 2024 halving, analysts noted that the end of this cycle may not be complete but merely delayed, instilling a more cautious market outlook.
As the crypto community navigates this evolving landscape, the sentiment around Bitcoin remains fragile. Investors and analysts alike are closely monitoring price movements, market liquidity, and macroeconomic trends to better understand potential pathways for recovery.
