Researchers from XWIN Research Japan have assessed the key factors driving the decline in the Bitcoin price.

The Bitcoin (BTC) price has suffered a decline driven by several factors . Analysts noted that expectations for a December rate cut have faded, and the Federal Reserve has adopted a more cautious stance due to persistent inflation risks . The digital coin's price has fallen below the crucial $100,000 level. The situation has worsened amid a sharp shift in institutional flows .

Experts noted that in mid-November, ETF inflows ceased and withdrawals began. Almost $1.1 billion left the funds in two days. This capital movement led to a significant decrease in liquidity . Market pressure intensified.

High leverage levels and their sharp reduction were an additional factor. As soon as key support levels were broken, cascading liquidations began . Within hours , long positions worth over $600 million were liquidated. Exchange rumors and incidents in the DeFi space also impacted the market.

The duration of the current decline remains a key question. Analysts believe that the $92,000–$94,000 level represents critical support. A breakout of this range could pave the way for a decline toward the $85,000 region. This scenario could extend the correction until early or mid-2026. However, on-chain analytics data partially mitigates the pessimism.

CryptoQuant CEO Ki Young-ju pointed out that the current situation does not look like a reversal into a long-term bear market. He noted that Bitcoin's realized market capitalization is at an all-time high. This suggests the absence of large-scale capital outflow. Experts see several factors that could trigger the next stage of growth . Improving the macroeconomic situation remains key . In 2026, a possible transition to lower rates or expanded liquidity could return capital to risky assets. Additional signals include a recovery in ETF inflows and a weakening of selling by long-term holders.

Source: cryptonews.net