Bitcoin(BTC) currently has a price of $95.8K and is down -0.24% over the last 24 hours, even though the volatile cryptocurrency slid below $95,000 on Friday in worst week since March 2025. This marks about 6% decline in top-ranked cryptocurrency in a week as it failed to hold on to the key psychological level of $100,000, plunging investors into “extreme fear” as the Fear & Greed Index dropped to 10, its lowest level since February 2025.

Several factors are being attributed to the current sell-off, including profit booking, liquidity tightening, massive ETF outflows, and dim hopes of a rate cut by the U.S. Federal Reserve. This negative chain was triggered after October 19’s massive sell-off worth more than $19 billion as the U.S. threatened China with widespread sanctions, which sent crypto markets into the panic mode, leading to a spiral effect. In the past one month, BTC has now declined 12.27%. Not just BTC, the tremors are being felt across the crypto market, with Ethereum shedding 5.35% in the past week. Solana saw 10.15% decline in the same period. XRP and Tether, though, held up, with week’s losses standing at 0.90% and 0.05%, respectively.   

BTC’s sharp slide has triggered fresh debate among India’s top crypto leaders, who believe the downturn could be temporary shake-out rather than the end of the bullish crypto cycle. Market participants say the current market correction is more macro-driven than structural. 

Short-term shake-out or end of bullish cycle?

Market participants say while volatility has picked up, the core structural drivers of the crypto market remain intact, and that it could be “premature” to conclude that the cycle has peaked. Sumit Gupta, Co-founder at CoinDCX, said the recent decline appears largely tied to tightening liquidity conditions in the US financial system. “The Federal Reserve’s ongoing quantitative tightening has reduced liquidity, and Bitcoin’s price has historically correlated with such shifts. As liquidity normalises, we expect market conditions to stabilise and the broader uptrend to resume,” Gupta told Fortune India.

Some believe the current down cycle is a phase where excess optimism is getting corrected, but it does not necessarily indicate the end of the broader uptrend. Data backs these claims: Long-term Bitcoin holders are capitulating at the fastest pace in nearly a year, dumping 8,15,000 BTC in 30 days, yet whales are absorbing; they accumulated 45,000 BTC this week alone. 

“What we are seeing is a clean-up of leveraged positions and profit-taking by early holders at a time when global liquidity is tightening. In past cycles, these periods have helped bring stability back into the market. The underlying fundamentals remain intact, and India’s maturing trading behaviour also points to a more resilient environment,” says Avinash Shekhar, Co-Founder & CEO, Pi42. 

Large players also see the ongoing consolidation as an accumulation zone, which could soon lead to trend reversal. “In the past week alone, whales bought over 45,000 Bitcoins, mirroring a similar trend observed earlier this year when whales initiated the year's largest accumulation wave during sharp price declines. Additionally, central bank initiatives to boost liquidity are yet to make their way to the markets,” opines Edul Patel, Co-founder and CEO of Mudrex.

What should investors do amid correcting markets?

Regardless of the factors, BTC has seen a massive correction since October 6, when it hit its life-time high at $126,000. Such a massive correction, with BTC gains dropping to just 4.93% in one year, is bound to send markets into the sell-off mode. However, as Ashish Singhal, Co-founder of CoinSwitch, opines, it could well be driven by broader macro conditions. He believes global sentiment remains risk-averse, with tech stocks correcting and major indices in the US, Japan and China under pressure. “The prolonged US government shutdown, and the delay in key data on inflation and jobs, has added to the overall uncertainty. In periods like this, investors may benefit from reassessing risk exposure, avoiding decisions based solely on short-term volatility, and maintaining diversified allocations while monitoring macro indicators closely,” he said.

Market pullbacks of this scale may appear unsettling, but they are neither unusual nor indicative of a structural breakdown in Bitcoin’s long-term trajectory, agrees Raj Karkara, COO, ZebPay. “Historically, such phases have provided the foundation for healthier price discovery and more sustainable future growth. The underlying fundamentals of Bitcoin, including its fixed supply, maturing market infrastructure, and expanding institutional participation, remain intact,” he says.

He says Bitcoin’s core strengths continue to hold firm even in periods of correction. “Investors who stay patient through these phases have historically been better positioned when momentum returns. This moment should be viewed less as a warning and more as a reminder of why long-term strategy matters,” says Karkara.