Bitcoin price under pressure, slips below $93,000 as ‘self-fulfilling prophecy’ puts 4-year cycle in focus
Bitcoin (BTC-USD) remained under pressure on Monday, falling below $93,000 and paring its losses to around 25% from record highs set in October. The decline raises questions about whether this represents a temporary correction or the beginning of another four-year cycle leading to a longer-term sell-off.
The token has fallen sharply since $19 billion worth of leveraged positions were liquidated last month; This situation has been exacerbated by long-term owners taking profits. The current sell-off also comes approximately 400 to 600 days after the last halving event in April 2024, when Bitcoin reached its historical peak.
“This self-fulfilling prophecy led to Bitcoin selling off in the market in Q4’25,” Bernstein analysts led by Gautam Chhugani wrote. he wrote. “However, we believe the following evidence points to a short-term consolidation towards a new domestic base, not the historical 60-70% decline seen in previous cycles.”
Bitcoin reached a record high of over $126,000 per token on October 6.
Read more about cryptocurrency moves and today’s market movements
Analysts noted that the increase in ETF adoption by institutional investors reflects Bitcoin’s “higher quality and consistent ownership.”
The Trump administration’s support for Bitcoin and the Openness Act legislation in Congress also represent positive factors.
“The current market environment does not feel like a cycle top to us.” Chhugani said. “It appears to be a structural, multi-year trend of institutional participation in the Bitcoin and crypto capital markets, with occasional corrections along the way.”
“We are monitoring whether Bitcoin will drop to near the ~$80k range seen immediately after the Trump election. We believe the current market weakness could provide an attractive entry for new investors,” he added.
Strategy’s (MSTR) continued buying of the cryptocurrency also offers some support to the company on Monday explanatory It said it purchased another 8,178 tokens for an average of $102,171 each, for a total of $835 million.
Read more: Can you buy crypto with a credit card? See the pros and cons.
Meanwhile, 10X Research stated that new buyer appetite stopped around October 10, and that the Fed’s more hawkish attitude in recent days “disrupted the macro balance, making the market increasingly fragile.”
“This is exactly why the four-year cycle needs to be seriously evaluated,” according to a 10X Research note.
“[This cycle] “It is consistent with a wide range of independent indicators and conditions that all point to the same conclusion: this is a moment for maximum caution.”
