Crypto Winter Arrived? Check out the Causes of the Bitcoin Price Crash!

Jakarta, Pintu News – In the past two weeks, the crypto market has experienced high volatility with Bitcoin plummeting below $87,000. This has sparked concerns among investors as to whether this is the beginning of the long-awaited bear phase. Are we entering a bear market era for the crypto market?

Causes of Bitcoin Price Decline

NDV’s Jason Huang explains that Bitcoin’s recent price drop is related to its four-year issuance cycle which has a long-term impact. “Bitcoin follows a four-year issuance cycle. From the 2008-2012 cycle, 10 million new BTCs were produced; in the current cycle, only 600,000.

This new supply reduction reduces structural selling pressure,” Huang said. In addition, Huang added that major global macro elements, including Federal Reserve policies and trade tariffs, are also having a negative impact on BTC prices. “After the ETF approval, Bitcoin price became more demand-driven than supply-driven.

However, the cycle of cuts still creates additional selling pressure. On October 11, Bitcoin prices fell sharply after Trump indicated the possibility of a second tariff war, causing a huge drop and liquidation of about $20 billion due to excessive leverage,” he added.

Also Read: Invest $1,000 in XRP: Potential Profits to Reach Tens of Thousands of Dollars in 2040?

Bear Market Narrative

Despite the recent market correction, Huang is still skeptical of the bear market narrative. “The current correction is also about 30%, so I remain optimistic. In the long run, Bitcoin will continue to attract investors,” Huang said.

After Trump’s tariff announcement, both gold and Bitcoin recovered faster than the Nasdaq as many investors perceived them as monetary hedges and preferred to accumulate at lower prices.

According to Huang, the rapid recovery of Bitcoin and gold shows that both assets are still considered an effective hedge against economic instability. “From this perspective, I am optimistic about the future,” he concluded.

Conclusion

With multiple factors influencing Bitcoin’s price fluctuations, the crypto market is currently showing signs of uncertainty. However, with a deep understanding of market dynamics and economic cycles, investors can be better prepared for potential risks and opportunities.

Also Read: A Complete Guide to Saving Digital Gold in 2025 – Simple, Safe, Can Start from Rp11,000!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ

Q1: What is the Bitcoin issuance cycle?

A1: The Bitcoin issuance cycle is a four-year period during which the amount of newly mined Bitcoin decreases. This is part of a mechanism designed to gradually reduce the new supply of Bitcoin.

Q2: How do trade tariffs affect the price of Bitcoin?

A2: Trade tariffs can increase uncertainty in global markets, which often leads investors to seek out perceived safe assets like Bitcoin. However, unexpected tariff announcements can also lead to price drops due to market uncertainty.

Q3: Why is Bitcoin still considered a monetary hedge?

A3: Bitcoin is considered a monetary hedge because it is finite and not affected by inflationary policies from governments or central banks, similar to gold.

Q4: What impact will the ETF approval have on Bitcoin price?

A4: The approval of ETFs has made the price of Bitcoin more demand-driven than supply-driven. This means that more institutional investors can participate in the Bitcoin market, potentially increasing demand and price.

Q5: Is a 30% price correction normal in the crypto market?

A5: Yes, a 30% correction is considered quite normal in the crypto market, which is known for its high volatility. This kind of correction often occurs after a period of rapid price increases.

Reference

• Watcher Guru. Markets in Panic: Is This the Long-Awaited Crypto Winter or Just a Dip Now. Accessed on November 27, 2025