Bitcoin (BTC) has recently shown signs of weakening momentum, briefly dipping below $84,000 on the 27th — a weekly decline of nearly 15%. When compared to its all-time high of $109,350 reached in January 2025, the drop now stands at approximately 23%, surpassing the 20% threshold widely recognized in financial markets as the technical definition of a bear market.
Despite brief recovery efforts pushing prices back above $86,000, analysts remain cautious. Many are questioning whether this correction marks the beginning of a deeper downturn — and some are issuing stark warnings: "The party is over."
👉 Discover what’s next for Bitcoin and how to prepare for market shifts.
Market Sentiment Shifts Amid Global Risk-Off Mood
A broader risk-off sentiment has taken hold across global financial markets, impacting equities, gold, and cryptocurrencies alike. As geopolitical tensions and macroeconomic uncertainty intensify, investors are reducing exposure to volatile assets. This trend is particularly significant for Bitcoin, which continues to exhibit strong correlation with risk-on assets despite its growing adoption as a digital store of value.
One clear indicator of weakening confidence is the outflow from Bitcoin exchange-traded funds (ETFs). In just the first three days of the week, over $2.2 billion exited U.S.-listed Bitcoin ETFs — a worrying sign that institutional and retail investors may be pulling back amid fading optimism.
This shift underscores a growing realization: market rallies driven by speculation require sustained catalysts to continue. Without fresh momentum, corrections can deepen quickly.
Expert Warnings: Bear Market Signals Are Flashing
Peter Schiff, CEO of Euro Pacific Capital and long-time gold advocate, has been vocal about his bearish stance. He declared that the rally toward $100,000 was nothing more than a speculative bubble — and now, it’s bursting.
“The party is over,” Schiff stated. “Bitcoin is entering a bear market. Any rebounds we see from here are likely just bear market rallies — temporary bounces that lull investors into complacency before the next leg down.”
Schiff argues that without real-world utility or intrinsic value, Bitcoin remains vulnerable to sentiment shifts. As macro conditions tighten and liquidity recedes, he expects further downside pressure.
While Schiff’s views are often contrasted with pro-crypto analysts, his warning reflects a rising chorus of caution among traditional finance experts who view crypto as an unproven asset class in uncertain times.
The Trump Effect Fades: Market Enters “Wait-and-See” Mode
Earlier optimism that former U.S. President Donald Trump’s return to office would usher in favorable cryptocurrency regulations has begun to wane. While his administration initially sparked bullish sentiment — helping fuel Bitcoin’s climb toward six figures — analysts now say the market has entered a consolidation phase.
Joel Kruger, currency strategist and crypto analyst, notes:
“We’re now in a ‘wait-for-facts’ environment. The initial hype has passed. Without concrete regulatory clarity or policy actions supporting digital assets, it’s difficult for Bitcoin to sustain upward momentum.”
Kruger emphasizes that political rhetoric alone isn’t enough to drive long-term price appreciation. Markets need actionable developments — such as clearer tax guidelines, custody solutions, or mainstream adoption incentives — to regain confidence.
Without these catalysts, sideways movement or continued decline remains the most likely scenario in the near term.
👉 Stay ahead of regulatory changes and market trends shaping Bitcoin’s future.
Not All Experts Are Bearish: Some See This as a Bull Market Pause
Despite growing pessimism, not all voices agree that Bitcoin has entered a true bear market.
Marty Party, a well-known cryptocurrency analyst, maintains a contrarian view. He argues that the current pullback is merely a healthy consolidation within a larger bull cycle — especially if macroeconomic conditions shift in favor of risk assets.
Party believes that once the U.S. Federal Reserve begins cutting interest rates and resumes a quantitative easing stance, liquidity will return to financial markets. In such an environment, he expects both traditional investors and institutions to re-enter the crypto space aggressively.
“This isn’t the end — it’s just the pause before the real bull run,” Party said. “We haven’t even seen the full impact of monetary stimulus yet. When it comes, Bitcoin will lead the charge.”
His outlook hinges on timing: if rate cuts arrive in late 2025 or early 2026, combined with increased institutional participation and spot ETF inflows resuming, Bitcoin could rebound sharply.
Core Keywords Driving Market Discussion
Understanding the current Bitcoin landscape requires familiarity with key themes shaping investor behavior:
- Bitcoin bear market
- BTC price correction
- Cryptocurrency ETF outflows
- Market sentiment analysis
- Federal Reserve monetary policy
- Risk-off investment behavior
- Bitcoin technical analysis
- Macro-economic impact on crypto
These terms reflect both technical and fundamental forces influencing Bitcoin’s trajectory. They also align closely with common search queries from users seeking clarity during periods of volatility.
Integrating these keywords naturally into analysis helps ensure content remains relevant and discoverable — without compromising readability or depth.
Frequently Asked Questions (FAQ)
Q: What defines a bear market for Bitcoin?
A: A bear market is typically defined as a decline of 20% or more from recent highs. With Bitcoin down roughly 23% from its January 2025 peak, it meets this technical criterion.
Q: Why are Bitcoin ETFs experiencing outflows?
A: ETF outflows reflect declining investor confidence. Factors include macro uncertainty, lack of regulatory clarity, and expectations of tighter monetary policy — all prompting investors to reduce risk exposure.
Q: Can Bitcoin recover without Fed rate cuts?
A: While possible, sustained recovery becomes more challenging without expanding liquidity. Rate cuts tend to boost risk assets, making them a key catalyst for renewed crypto bull runs.
Q: How does political leadership affect cryptocurrency prices?
A: Political figures like Trump can influence sentiment through pro-crypto statements or proposed policies. However, actual price impacts depend on implemented regulations, not just rhetoric.
Q: Are dips in Bitcoin price buying opportunities?
A: Historically, many major downturns were followed by stronger rallies. But timing the bottom is risky. Dollar-cost averaging during corrections is often a safer strategy for long-term holders.
👉 Learn how smart investors navigate market corrections and position for growth.
Final Thoughts: Navigating Uncertainty With Strategy
The current phase of Bitcoin’s evolution highlights a maturing asset class caught between speculative fervor and real-world adoption challenges. While short-term pain is evident, long-term potential remains intact — particularly if macro tailwinds return.
For investors, the key lies in balancing caution with opportunity. Monitoring ETF flows, Fed policy signals, and regulatory developments can provide early clues about the next major move.
Whether this downturn marks the start of a prolonged bear market or simply a pause before the next leg up depends on forces beyond price alone — including innovation, adoption, and global liquidity trends.
One thing is certain: in crypto, volatility is inevitable — but so are cycles of renewal.