As Bitcoin Plunges Below $95K, Is Crypto in a Bear Market?

Bitcoin recently dropped to a low below $96,000, raising concerns about a potential bear market in the cryptocurrency sector. The decline, approximately 24% from its peak of $126,200 within five weeks, is attributed to waning demand and increased selling pressure, leading to over $1.24 billion in liquidations of long positions in the last 24 hours. Experts note that the convergence of derivative market indicators, negative Coinbase premiums, and declining institutional interest reflects a troubling trend. Adam Chu from GreeksLive indicates we may currently be in a bear market, with a shift in options market sentiment. Analysts highlight several bearish factors including decreased stablecoin liquidity and network activity. The formation of a 'death cross' in Bitcoin's moving averages suggests further bearish signals. Analysts believe the market shift is part of a larger transition rather than an outright crash, depending on upcoming economic data, regulations, and Bitcoin's on-chain metrics. Investors are advised to remain cautious as prediction market confidence in Bitcoin reaching $115,000 before $85,000 declines significantly.

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