Bitcoin (BTC) is facing a tough time. Even though it did very well in the first nine months of 2025, it hasn’t done as great in October. On Monday, Bitcoin’s price went up briefly to over $90,000. Many traders were hopeful that this jump might signal a strong start to the new year. But this increase didn’t last long, and the price dropped back to around $87,000.
Some experts are warning investors to be careful. They say these small jumps in price might be “liquidity traps.” A liquidity trap happens when people or businesses avoid investing because they think prices might drop again, even if conditions look good for a while.
Short-Term Jump, Long-Term Problems
Bitcoin is currently more than 30% below its all-time highest price of $126,000, which it reached in October. A well-known cryptocurrency expert, Mr. Wall Street, thinks Bitcoin is now in a “bear market.” A bear market is when prices of an investment drop significantly, usually by 20% or more, and people feel unsure about the future.
Mr. Wall Street believes that market makers are influencing Bitcoin’s price and could push it even lower in the coming months. Market makers are professionals or companies that help keep markets active by buying and selling assets. They profit by setting prices slightly higher when they sell and slightly lower when they buy. In Mr. Wall Street’s view, Bitcoin prices may go down to somewhere between $64,000 and $70,000 after a temporary short-term bounce.
Another analyst, known as Doctor Profit, agrees that Bitcoin is still in a bear market. He posted on social media, saying that the lowest point, or “bottom,” for Bitcoin might take longer to arrive. He thinks this bottom might not happen until September or October of 2026. He also advises Bitcoin traders not to expect prices to stop falling soon. He explained that the current downward trend could last a lot longer than people expect.
Doctor Profit mentioned that he’s not heavily investing in USDT right now. USDT, also known as Tether, is a cryptocurrency that is stable because its value is tied to the US dollar. Instead, he prefers investing in physical assets like silver and gold. These are considered “safe” investments during uncertain times. Doctor Profit even revealed he had bet against Bitcoin’s price (this is called “shorting”) when it was priced between $115,000 and $125,000. Shorting means a trader expects an asset like Bitcoin to lose value, and they profit when the value drops.
Still, Doctor Profit admitted that he is holding onto a medium-sized amount of Bitcoin right now. He predicts the price might stay steady for a short period and could even go up to around $107,000 before dropping again. He thinks this next price drop might come in February or March.
Signs of a Bear Market
Some other signs also show that Bitcoin is entering a bear market. For example, long-term holders (people who keep their Bitcoin for a long time instead of selling it quickly) are not making as much profit as they used to. This can be seen in on-chain data, such as the LTH SOPR metric hovering around 1.0. LTH SOPR tracks whether these holders are selling Bitcoin at a profit or loss. A reading around 1.0 usually means there’s no big profit-taking, which is common during a bear market.
Another important tool, called the Bitcoin Cycle Market Index (BCMI), has been going down recently. The Bitcoin price has been falling along with this index, and it hasn’t shown signs of steadying. This suggests that Bitcoin’s market is changing into a different phase. Right now, it looks more like a “bear phase,” where prices either drop slowly over time or stay steady for a long while, rather than showing big upward jumps.
In summary, experts are saying that Bitcoin’s troubles are far from over. While there might be short moments of recovery, prices are likely to drop further before they improve significantly.
The article initially appeared on CryptoPotato.