"Bitcoin bulls have it all Wall Street support, political tailwinds, institutional cash. Everything, that is, except a rally. After topping $126,000 in October, Bitcoin has fallen sharply, briefly wiping out its 2025 gains before stabilizing on Monday morning in Asia. The sharp retreat from record highs comes in a year that was supposed to cement Bitcoin's legitimacy. Wall Street has shown up, exchange-traded funds are bringing crypto into mainstream portfolios and the Trump administration has fully embraced crypto."
"With no traditional Wall Street playbook for how Bitcoin should behave no stable correlation, no proven risk framework some default to the model they know best: the fouryear halving cycle. That's the event that sees Bitcoin's supply growth cut in half, by design, around every four years. Historically, it's spurred speculative booms followed by painful busts, often with a lag as miners operators of powerful computers supporting the network tend to unload their holdings just as prices sour."
Bitcoin topped $126,000 in October before a sharp decline that briefly erased 2025 gains and later stabilized in Asian trading. Wall Street participation, exchange-traded funds and political support coincided with the rally, yet the market retreated rapidly without a clear trigger. Bitcoin's market value fell roughly $600 billion from the October peak. Traders and investors are unsettled as conviction evaporated unusually fast, prompting revisits of technical charts and reliance on historical frameworks. The April 2024 halving and the October peak roughly fit the traditional four-year cycle, but heavy institutional buying may be changing market dynamics. Retail sentiment remains poor and further downside is possible.
Read at www.mercurynews.com
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