The cryptocurrency market has entered a turbulent phase as Bitcoin, the flagship digital asset, plummeted below the psychologically significant $100,000 mark, reaching its lowest level since late June. This sharp decline, which saw Bitcoin lose over 20% from its October 6 peak of $126,000, has sparked intense speculation among analysts: is this a temporary pause in the rally or the onset of a prolonged bear market? The immediate catalysts for the downturn include technical breakdowns, shifting macroeconomic conditions, and internal market dynamics. Technically, Bitcoin’s breach of the 200-day moving average at $109,800 has signaled potential further declines. Katie Stockton of Fairlead Strategies predicts the correction could persist for weeks, with the next support level around $94,200, while maintaining a long-term target of $134,500. Macroeconomic pressures have also intensified, with a stronger US dollar and hawkish Federal Reserve rhetoric dampening investor sentiment. This has led to a net outflow of $360 million from cryptocurrency investment products last week, according to CoinShares’ James Butterfill. Internally, institutional demand has waned, with on-chain data revealing that institutional net buying has dropped below the daily mining supply for the first time in seven months. Glassnode data further confirms a slowdown in institutional accumulation, with Blackrock’s spot Bitcoin ETF seeing weekly net inflows shrink to less than 600 Bitcoins, a stark contrast to the 10,000 Bitcoins per week during previous rallies. Despite these challenges, some analysts remain optimistic. QCP Capital attributes the pullback to profit-taking by long-term holders rather than macroeconomic factors, noting the market’s resilience in absorbing significant selling pressure. Gary O’Shea of Hashdex emphasizes that the long-term investment case for Bitcoin remains intact, citing accelerating institutional adoption as a key driver for future growth. The current downturn is seen as a critical test for the market’s new structure, built around spot ETFs and institutional participation. While this structure may have reduced volatility, the path forward depends on a positive shift in the macro environment and a resurgence of institutional demand. For now, the market watches closely to see if Bitcoin can hold the $100,000 level or if further corrections are imminent.