Bitcoin bear market OR bear trap? Here’s what your ‘quants’ are saying

Bitcoin’s sustained worth above $100,000 was imagined to sign its arrival as a mature institutional asset. As a substitute, its sudden reversal under that threshold has unsettled merchants and revived fears of one other crypto winter.

On Nov. 4, Bitcoin briefly dipped to its lowest degree since Could at $99,075, earlier than recovering to roughly $102,437 as of press time. Regardless of the worth restoration, BTC continues to be down roughly 3% from the day’s peak of $104,777, in response to yourcryptonewstoday information.

This worth efficiency resulted in Bitcoin lagging US Treasuries for the primary time this 12 months, erasing one among 2025’s hottest macro trades.

But analysts say the transfer displays a structural reset slightly than a systemic collapse.

Why is Bitcoin worth falling?

Lengthy-term holders have performed a major function in driving the flagship digital asset’s downward pattern by realizing income at file charges.

Bitcoin analyst James Van Straten famous that this cohort has offered greater than 362,000 BTC, equal to roughly 3,100 BTC per day, since July. In accordance with him, that tempo has quickened over the previous three weeks to just about 9,000 BTC each day.

One other analyst, Johan Bergman, recommended the overall may very well be even increased. He calculated that the LTH cohort’s cumulative realized income elevated from $600 billion in June to $754 billion as of at the moment.

In accordance with him:

“Assuming they offered at a mean worth of $110,000, that’s about $72,000 in revenue per coin. So, $154B / $72K ≈ 2.1 million cash offered.”

Knowledge from James Verify at CheckOnChain additional reveals that Bitcoin at the moment faces $34 billion in month-to-month sell-side strain as older cash return to exchanges.

That influx has largely offset weakening demand from ETFs and company treasuries, a few of which have shifted focus to share buybacks as a substitute of latest crypto allocations..

On the identical time, speculative exercise can also be fading out there.

Knowledge from Glassnode exhibits that the funding charges for perpetual futures have decreased by 62% since August, from roughly $338 million to $127 million per 30 days, reflecting decrease leverage.

The agency acknowledged:

“This underscores a transparent macro downtrend in speculative urge for food, as merchants develop reluctant to pay curiosity to take care of lengthy publicity.”

In the meantime, the fading enthusiasm comes amid tightening international liquidity.

The extended US authorities shutdown, the joint-longest on file, has immobilized roughly $150 billion within the Treasury Basic Account, eradicating liquidity that circulates usually by means of threat belongings.

BitMEX cofounder Arthur Hayes famous that for the reason that debt ceiling enhance in July, greenback liquidity has declined by roughly 8%, whereas Bitcoin has decreased by 5%, reinforcing the correlation between the 2.

$95K turns into the market’s stress level

As a result of this wave of promoting exercise, Verify estimates that 57% of all {dollars} invested in Bitcoin are actually in loss. His cost-basis mannequin, which values every coin at its final on-chain transaction, displays what he calls the market’s recency bias.

He wrote:

“We worth each coin when it final transacted onchain, and this helps us interpret sentiment based mostly on our recency bias We don’t take into consideration our cash from prior cycles as a lot as those we purchased 3-days in the past.”

Contemplating this, he identified that roughly 63% of capital invested carries a value foundation above $95,000, making that degree the important thing psychological and structural help.

He additionally famous that unrealized losses complete practically $20 billion, or about 3% of market capitalization. Traditionally, bear markets have begun as soon as unrealized losses exceed 10%.

Due to this fact, if costs drop under $95,000, he anticipates a deterioration in sentiment. Prior corrections in 2024 and early 2025 stabilized when losses reached 7–8% of market cap. Something deeper might sign {that a} new bear section is underway.

Verify famous:

“Clearly no one needs to make that decision AFTER the worth has already fallen, which is why $95k is a important line within the sand to carry, because it deteriorates under.”

Is that this the beginning of a bear market?

Trade analysts stay divided on whether or not Bitcoin’s latest pullback marks the start of a brand new downtrend or just a mid-cycle reset.

Verify mentioned:

“There was an amazing rotation of cash in 2025, and a lions share of it has occurred above $95k. We don’t need to see the worth fall under $95k, however I additionally count on the bulls to mount one hell of a combat to defend it. Put together for a bear however dont imagine the doomers.”

Nonetheless, in a latest observe referred to as “Hallelujah,” Hayes frames the decline as a perform of momentary greenback shortage slightly than structural failure.

In accordance with him, the heavy issuance of Treasury securities has siphoned liquidity from the cash markets. Nonetheless, he believes this dynamic will reverse as soon as policymakers reopen the federal government and resume balance-sheet growth.

He wrote:

“If the present cash market situations persist, the treasury debt pile grows exponentially, the SRF stability should develop because the lender of final resort. As SRF balances develop, the quantity of fiat {dollars} on the planet expands as nicely. This phenomenon will reignite the Bitcoin bull market.”

In the meantime, Matt Hougan, chief funding officer at Bitwise Asset Administration, shares Hayes’s long-term optimism however frames it inside Bitcoin’s evolving maturity.

On CNBC, he described the latest downturn as “a story of two markets,” the place retail merchants capitulate amid leverage washouts whereas establishments quietly enhance publicity.

Contemplating this, Hougan pressured that BTC’s risk-adjusted outlook stays unmatched, however the days of 100x yearly returns are gone. He added:

“We’re unlikely to see 100x returns in a single 12 months. However there’s nonetheless large upside as soon as the distribution section is full…[However, we still] imagine bitcoin will attain $1.3 million by 2035, and I personally assume we’re being conservative.”

On the identical time, he believes BTC’s period of 1% allocation is over as its decrease volatility makes it extra enticing to carry.

Hougan concluded:

“As an allocator, my response to this dynamic wouldn’t be to promote the asset—in spite of everything, we forecast bitcoin to be the best-performing giant asset on the planet over the subsequent decade—however slightly, to purchase extra of it. Put in another way, decrease volatility means it’s safer to personal extra of one thing.”