This Article by Bloomberg editors Olga Kharif and David Pan discusses the crypto bear market that has erased recent gains in the digital currency marketplace. On October fifth, Bitcoin reached being up 30% year to date. Today, Bitcoin stands at up merely a 2 percent increase YTD, down over 20% in the past three months. Following president Trumps election in November Bitcoin rallied to an all time high of $126,251 on October sixth, only to begin tumbling four days later following the proposal of international tariffs from the Trump administration.
Bitcoin relies upon Large institutional investors, and ETF's to be the provider of 'legitimacy' for Bitcoin. However, these large investors have begun to slowly and quietly begin to sellout of their positions.
“The selloff is a confluence of profit-taking by LTHs, institutional outflows, macro uncertainty, and leveraged longs getting wiped out,” Jake Kennis, a senior research analyst at Nannen said, in an interview with Bloomberg. Bitcoin and the crypto markets are famously volatile, however many investors have begun to view the alternative currency as a hedge to inflation due to its stable performance over the past year. Chris Newhouse, director of research at Ergonia, claims that general consumer sentiment has fallen off significantly and the while cyclicality is nothing new in crypto there don't seem to be any natural bullish catalysts coming forward in the near future.
https://www.bloomberg.com/news/articles/2025-11-16/bitcoin-erases-this-year-s-gain-as-crypto-bear-market-deepens?srnd=homepage-americas
3 comments:
This is a good summary of how fast the crypto market can flip. I do not know a lot about crypto, but it's kind of crazy that Bitcoin went from huge YTD gains to almost nothing in just a few months. Do you think this downturn is just another normal crypto cycle, or could it signal a longer-term shift if big institutions keep leaving?
my portfolio has taken a pretty big hit from this and makes me want to decide if I want to move some of my money around. I didn't really know much about this before reading but is something I will definitely dive deeper into.
It’s surprising how quickly sentiment flipped after hitting those highs earlier in the year. With big institutional players quietly stepping back, it feels like the market is waiting for a real catalyst otherwise the volatility might keep dragging things down.
Post a Comment