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Bitcoin (BTC) recently touched highs around ~$125,000, then pulled back more than 20% to trade around the ~$100,000 level.
The total crypto market cap has fallen significantly from its early-October peak, erasing nearly all of 2025โs gains.
Sentiment indicators are flashing caution: the โFear & Greedโ index is down to very low levels, signalling heightened fear among investors.
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๐ What are the key drivers?
Macro headwinds: Higher interest rates, tighter liquidity and global economic uncertainty are weighing on risk assets โ including crypto.
Technical/structural weakness: Bitcoin broke below key support (~$100,000) and large leveraged long positions were liquidated, accelerating the pullback.
Institutional flows lagging: While institutions remain interested, momentum is slowing and new inflows are muted relative to previous rallies.
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โ What to watch & potential paths
If Bitcoin can hold above ~$100,000 and bounce, it could stabilise and set up for a recovery.
If it closes decisively below support (e.g., ~$90,000 or lower), the risk of a deeper drop increases.
For altcoins: With Bitcoin under pressure, many altcoins are even more vulnerable โ so strength in Bitcoin will likely be a prerequisite for broader altcoin rallies.
Catalysts to watch: Any change in monetary policy (e.g., interest-rate cuts), major regulatory developments, or renewed large-scale institutional buying could shift sentiment.
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