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Investment company Galaxy lowered its 2025 Bitcoin price forecast to $120,000 from $185,000, citing several headwinds and dampened price volatility due to passive investment flows in exchange-traded funds (ETFs) and financial institutions.
Factors such as whale dumping 400,000 Bitcoin (BTC) on the market in October, with rotations in other investment narratives such as gold, AI and stablecoins, in addition to leveraged liquidations, have put a brake on the BTC price, Alex Thorn, head of research at Galaxy, he said on wednesday
“Bitcoin has entered a new phase, what we call the ‘maturity era’, in which institutional absorption, passive flows and lower volatility dominate,” Thorn wrote on X. “If bitcoin can maintain the $100,000 level, we believe that the nearly three-year bull market will remain structurally intact, although the pace of future gains may be slower.”
The flash crash from October 10 – which triggered about $20 billion in liquidations cascading in 24 hours, the the largest liquidation event in crypto history — has “materially damaged” the bull trend, Thorn wrote.
Despite the revised price forecast, Thorn said he remains bullish on Bitcoin’s price fundamentals and long-term performance, but cyclical market dynamics, which has been a core feature of the crypto market. they were disturbed.
Related: Three things must happen for Bitcoin to avoid the bear market
Is this the start of the next Bitcoin bear market?
The crypto markets went into panic mode on Tuesday, as $1.3 billion was liquidatedcausing BTC to dip below $100,000 for the first time in four months.
BTC fell below its 365-day moving averagea dynamic support level, on Tuesday and Wednesday, raised fears of continued downside pressure and the beginning of the next Bitcoin bear market.
The price of BTC fell by more than 20% from its all-time high of over $126,000 during the market crash.
While some market analysts define a drop of 20% or more as bear market territory, others argue that a decline of 20% or more is normal.
“During this cycle, the typical correction signature was between 20-25%, with a couple of 30%. This current correction is in 21%, totally within the normal parameters”, the trader Lourenço VS. wrote about X.
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