Bitcoin’s latest plunge has rattled investors, sparked red-hot debates across financial markets, and reignited fears of a deeper crypto meltdown.
The world’s largest digital asset has slipped firmly below key psychological levels after it traded as low as $88,573 last week, wiping out billions in market value and sending shockwaves through an already jittery tech ecosystem.
As of the time of writing this report, BTC has retraced slightly, trading at $92,253. Bullish sentiment for the token is 82% while the fear and greed index remains at 16, suggesting extreme fear.
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While panic spreads among investors and traders, Coinbase UK CEO Keith Grose is urging calm, insisting the sharp downturn is nothing more than “short-term drama” in a market that continues to build long-term strength behind the scenes.
Grose noted that the downturn reflects a broader shift in global risk sentiment rather than fading conviction in digital assets. He further emphasized that underlying adoption trends remain intact even as macro conditions weigh on speculative assets. “The past year has brought real progress. This period is a recalibration, not a reversal,” he said.
Sharing the same sentiment, Bitwise Chief Investment Officer Matt Hougan is also urging investors to look past Bitcoin’s sharp pullback, arguing that the cryptocurrency’s long-term value has little to do with its recent slide and everything to do with the service it provides.
Hougan dismissed concerns about a deeper downturn, saying the current drop, roughly 27.5% from Bitcoin’s October all-time high, is “short-term noise.”
According to technical analysis, Bitcoin is testing the $90K–$92K support zone for the second time, and the reaction remains weak. A clean bullish reversal above $96K would indicate a shift in short-term momentum, allowing a corrective rally toward the unfilled inefficiency at $102K.
Market intelligence platform Santiment, notes that Bitcoin whale activity could experience its highest spike in weekly transactions this year, as it tracks an increase in whale activity. It noted that it has already tracked over 102,000 whale transactions exceeding $100,000, and a further 29,000 transactions over $1 million.
Bradley Duke, managing director and head of Bitwise Asset Management in Europe, said in an X post on Wednesday that his company has noticed that as fear and panic grip the market, whales have been buying the dip.
“While fear and panic had afflicted many investors, the number of BTC Whales has spiked of late. Large holders are keeping a level head and buying at discount prices from panic sellers”, he said.
Despite panic amongst investors, Strategy CEO Michael Saylor in a latest post on X, whose company currently holds 649,870 BTC worth about $60 billion, urged investors to “never back down.” Saylor remains unbothered and calm. He recently said that his company could withstand an 80%-90% drawdown in their Bitcoin holdings and still function.
Notably, Nvidia’s recent earnings have helped to buoy the price of Bitcoin, which has dropped over 10% in the past week amid a wider market rout. The chip maker reported record revenue of $57 billion for its third quarter (Q3) ended Oct. 26, up 62% from a year ago and beating Wall Street projections of $54.7 billion.
Ether (ETH) has also seen a recovery after sinking to around $2,873 on Wednesday, its first time under $2,900 since mid-July. It has climbed back above $3,000 and is down 1.9% on the day.
Also, Nvidia’s earnings beat helped lift shares across crypto companies with Coinbase (COIN), Strategy (MSTR), and Circle Internet Group (CRCL) all seeing slight bumps after finishing the trading session down.
Analysts predict that the US government reopening may spur Bitcoin bullish action potentially reversing weeks of downward pressure on the world’s largest digital asset. The shutdown has weighed heavily on risk sentiment, disrupted key economic data releases, and clouded visibility around the Federal Reserve’s next policy steps, all of which have created a challenging environment for crypto markets.
A government reopening is widely expected to restore clarity, unlock institutional activity, and reduce the macro uncertainty that has been driving investors toward safer assets. Market watchers argue that this shift in sentiment could pave the way for Bitcoin to regain bullish momentum.
Historically, Bitcoin performs better when investor confidence improves and risk appetite increases. With the U.S. economy’s administrative machinery back in motion, analysts predict that capital may begin flowing back into risk assets, including cryptocurrencies, after weeks of defensive positioning.
Future Outlook
Looking ahead, market analysts believe Bitcoin’s trajectory will largely depend on how quickly macro conditions stabilize and whether renewed liquidity returns to risk assets. The combination of improving U.S. economic clarity, increased whale accumulation, and strengthening institutional conviction suggests that the current downturn may be setting the stage for a broader recovery phase.
If Bitcoin manages to hold the critical $90K support zone and secure a decisive break above $96K, analysts anticipate a short-term rally toward the $102K inefficiency gap, with further upside potential should macro tailwinds strengthen.