Bitcoin has erased more than 30% of its gains since the start of the year just over a month after hitting a record high, as enthusiasm for the Trump administration’s pro-cryptocurrency stance is waning.
On Sunday, the price of Bitcoin dropped below $93,714, lower than its closing price at the end of last year. At that time, financial markets were booming after Donald Trump won the presidential election. On October 6, the price of Bitcoin soared to a record high of $126,251, but four days later, due to Trump’s unexpected remarks on tariffs, which triggered a global market crash, the price of Bitcoin began to fall.
“Overall market risk aversion is high,” said Matthew Hogan, chief investment officer of San Francisco-based Bitwise Asset Management. “Cryptocurrencies are like canaries in the coal mine, the first to sound the alarm.”
Over the past month, many of the biggest buyers – from ETF allocators to corporate treasuries – have quietly pulled out, depriving the market of the capital flows that had previously driven the token to record highs. Meanwhile, the cooling of recently surging tech stocks has also led to a decline in overall risk appetite.
For most of this year, institutional investors have been the pillar of Bitcoin’s legitimacy and price. Bloomberg data shows that ETFs have absorbed over $25 billion in total, pushing the asset size of Bitcoin to as high as approximately $169 billion at one point. Their stable inflow of funds has helped Bitcoin redefine its status as a portfolio diversification tool – a hedge against inflation, currency devaluation and political turmoil. But this already fragile narrative is now once again shaken, exposing the market to a more insidious but equally destructive factor: the withdrawal of funds.
“This sell-off is the result of a combination of factors, including long-term holdings being cashed in for profits, institutional capital outflows, macroeconomic uncertainties, and leveraged long positions being liquidated,” said Jack Kenneth, a senior research analyst at Nansen Securities. “It is clear that after a prolonged period of consolidation/interval oscillation, the market has temporarily chosen the downward direction.”
The market slump has hit smaller and less liquid tokens particularly hard, while these tokens are often favored by traders for their higher volatility and superior performance during market rallies. The MarketVector index, which tracks the bottom half of the 100 largest digital assets by market capitalization, has dropped by approximately 60% this year.
“The market always has its ups and downs, and the cyclical fluctuations of cryptocurrencies are nothing new,” said Chris Newhouse, research director at Ergonia, a firm focused on decentralized finance. “But from friends, Telegram chat groups and conferences, the general sentiment I’m sensing is that people are skeptical about deploying funds, and there are no obvious bullish catalysts at the moment.”
Technical analysis:
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Gold: There were signs of a continued decline in price on Friday. If you want to catch a rebound on Monday, it is recommended to wait for the recovery of the 4100 price level and consider taking action after the pattern is repaired. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: After we clearly reminded everyone last Friday that a liquidity sweep in the yellow zone was coming and to pay attention to the rebound, the opportunity to get on board within the day lies in the price breaking through 25,200. The subsequent target is around 25,250. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: The price has not entered the green zone as alerted by our plugin, but currently there is a chance for it to form a range-bound pattern. If there is a signal of rebound from the low level within the day, a short-term long position can be attempted. For other price levels, it is recommended to wait and see. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
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Today’s key economic data and events to focus on:
21:30 US November New York Fed Manufacturing Index
At 22:00, FOMC permanent voter and President of the Federal Reserve Bank of New York, John Williams, delivered a welcome speech at the 2025 Governance and Cultural Reform Conference.
At 22:30, Federal Reserve Vice Chair Jefferson will deliver a speech on the economic outlook and monetary policy.
