Does Bitcoin's Retreat Signal a New Bear Market for Crypto?
Bitcoin experienced a sharp decline in early February 2025, dropping about 14% in one day—its worst since November 2022—and falling over 50% from its October 2025 high of $126,080. This triggered over $1.4 billion in liquidations and pushed Bitcoin below levels commonly associated with a bear market. The downturn has raised concerns about stress across the crypto ecosystem, especially among miners and corporate treasuries, where falling prices threaten margins and increase risks of forced selling. Analysts warn further declines are possible, with some citing $38,000 as a potential lower target amid deteriorating momentum and macroeconomic pressures. While historical patterns suggest a four-year market cycle, some market participants believe current fundamentals are improving and a prolonged downturn is not certain. The distinction between a bear market and a temporary correction is tied to recovery duration. With liquidity possibly shifting to equities or commodities, the crypto market is likely to remain sensitive to broader macroeconomic trends, though a short-term technical rebound is seen as possible.
