The entire crypto market saw red over the last week.
Bitcoin (BTC) has entered a technical bear market, falling more than 20% from its October 2025 peak near $126,000 to trade slightly below $100,000 earlier this week.
The correction erased roughly $560 billion in market value during November’s flash crash, driven by geopolitical tensions, Fed rate uncertainty, and a mass unwind of leverage.
An estimated $19–30 billion in leveraged long positions were liquidated within 24 hours, constituting one of the largest single-day deleveraging events in the asset’s history.
Investor sentiment, as measured by the Crypto Fear & Greed Index, plunged to 24, signaling “Extreme Fear” and ending the positive momentum built through much of the fourth quarter.
The broader macro environment added more pressure, as capital rotated into equity markets following Fed Chair Jerome Powell’s commentary that tempered expectations for a December rate cut.
The market’s tone has now shifted towards caution, as Bitcoin has only gained 8% year-to-date, lagging behind the S&P 500’s 15% gain.
A look at recent Bitcoin corrections
Historical analysis suggests that the scale of a Bitcoin drawdown is a less reliable indicator of the recovery path than the underlying macroeconomic context and the health of the market’s leverage structure.
Here’s a look at some of the most significant drops over the last 24 months and how BTC performed in the following months:
It has been a volatile 24-month period for Bitcoin, marked by numerous significant price drops over that span. What’s remarkable, however, is just how resilient the digital asset has been. Every time, it’s managed to recover in short order.
It remains to be seen how long this roller coaster will last but with plenty of external factors (tariffs, inflation and political instability) it will likely continue for some time.
What could come next
With Bitcoin’s momentum fading, the market now faces several possible paths as volatility and leverage reset.
- Base-building consolidation: This is considered the most likely path. Bitcoin could stabilize between $90,000 and $105,000 as excessive leverage is purged and steady spot demand from ETFs returns.
- Relief rally: A short-term rebound remains possible. It could be sparked by a dovish shift from the Federal Reserve or positive inflation data. However, its sustainability would depend on genuine organic demand.
- Prolonged decline phase: If broader economic headwinds intensify, Bitcoin could experience deeper losses. This outcome would trigger an extended bear cycle, ultimately testing established support zones throughout its trading range.
- Key indicators: Watch funding rates, open interest, Fear & Greed Index, ETF inflows, and macro data (CPI, jobs) for sentiment cues.
Nonetheless, while Bitcoin trended downward, several other digital assets recorded significant gains. JellyJelly (JELLYJELLY), for instance, pumped by more than 200% during Tuesday’s trading session. This rally was accompanied by a substantial trading volume exceeding $4 billion before the token’s price partially retraced.
Similarly, new token Giggle (GIGGLE) experienced a significant move upwards of nearly 100%, with over $2.4 billion in volume traded, at press time. These mixed performances highlight a brief rotation of investor capital into specific, high-momentum altcoins. Ultimately, however, the broader market’s health remains fragile and inconsistent. Its future trajectory is still fundamentally tied to Bitcoin’s recovery.
Even Bitcoin has already shown signs of life as it quickly regained the $100,000 mark and is now trading around $104,000 at the time this article was published.