Bitcoin Is Falling, But Don’t Call It a Bear Market Yet: Analyst

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In brief

• Bitcoin fell below $95,000 multiple times Friday after losing 7.5% over the week.
• An analyst told Decrypt that the sell-off appears to be a mid-cycle correction rather than the start of a full-blown bear market, as losses haven’t reached capitulation levels yet.
• Market uncertainty stems from shifting Federal Reserve expectations, with traders now seeing only a 56.4% chance of unchanged rates in December compared to 94% odds of a cut just a month ago.

Bitcoin tumbled below $95,000 on Friday morning and looked like it had stabilized by the early afternoon—but then fell back below that mark again in the afternoon. Analysts told Decrypt that volatility from panicked short-term holders seems to have subsided, at least for now.

“The Bitcoin market is significantly influenced by the profitability of its newest participants, who represent fresh capital and liquidity. A dynamic price uptrend is typically sustained when these new investors are in profit, which builds market confidence,” popular pseudonymous CryptoQuant analyst CrazzyBlockk told Decrypt.

They explained that when short-term holders start to see 20% to 40% losses, it kicks off a period of panic selling.



“This level of pain has traditionally signaled a transition into full-scale capitulation phase,” they said. “Given the current loss level of this cohort, we remain distant from the classic signals of a macro bear market.”

But if new entrants can realize some gains, then support will build and the dip will be more of a “mid-cycle correction” rather than the beginning of a bear market, the analyst added.

The Capitulation Clock: Data Shows Bitcoin’s Panic is Flushing Out Weak Hands

“Statistically, when the Short-Term Holder cohort hits a realized loss of this magnitude, it historically indicates that panic selling is at its peak” – By @Crazzyblockk pic.twitter.com/SU3wfQDPwj

— CryptoQuant.com (@cryptoquant_com) November 14, 2025

Decrypt spoke with other analysts earlier on Friday, who varied in their reads on whether Bitcoin’s recent fall had kicked off the start of a bear market.

At the time of writing, Bitcoin was trading for $95,390 after having dropped 2.8% in the past day and 7.5% compared to last week. Liquidations in the past day have now topped $1 billion after Bitcoin slipped below $100,000 for the third time in a month. Before that stretch, the last time Bitcoin was trading for less than six figures was back in May.

Sentiment about the Federal Reserve’s last meeting of the year—and what it could mean for the federal interest rate—has been shifting. Aggregated derivatives data shows that traders think there’s a 56.4% chance that the Federal Open Markets Committee will leave rates unchanged on Dec. 9. Just a month ago, traders rated there was a 94% chance that the FOMC would cut rates again before 2026, according to the CME FedWatch Tool.

Typically, Bitcoin and risky assets, like equities, tend to benefit when the FOMC cuts interest rates, making safe assets like treasury bonds less appealing to investors.

But investor pessimism has been hitting crypto harder than stocks. Wintermute analysts said in a note shared with Decrypt that crypto’s been heavily negatively skewed compared to equity proxies like the Nasdaq 100.

“This macro rotation comes at a moment where the market already tested/defended the $100K level twice before, leading to a substantial push sub-$100K this time around,” they wrote.

Pepperstone Research Strategist Dilin Wu said the market isn’t yet showing signs of a sustained recovery, and so she advised that traders remain cautious in the near-term.

“Over the medium- to long-term, Bitcoin retains the potential to challenge new highs, but this hinges on sentiment improving, liquidity returning, and volatility easing,” she told Decrypt. “The four-year cycle still offers some reference, but it is far from a rule. I focus more on actual market participation and funding conditions than on purely cyclical patterns.”

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