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Bitcoin in decline: opportunities and risks for the 2025 bull market!
Bitcoin (BTC) witnesses a decline to $110,500 on 10/16/2025 as market analysts predict stabilization and possible recovery.
Bitcoin in decline: opportunities and risks for the 2025 bull market!
On October 16, 2025, Bitcoin (BTC) is facing challenges as the price hovers around $110,500, down 2%. These price movements are the result of recent record liquidations, which indicate a necessary market shakeout. Despite the turbulent times, Bitwise Chief Investment Officer Matt Hougan remains optimistic, emphasizing that last weekend's historic liquidation does not affect Bitcoin's long-term bullish outlook.
Bitcoin has recently come down from its all-time highs and is now stabilizing in a critical area. According to Hougan, the market is expected to stabilize and refocus on fundamentals, which could result in a continuation of the bull market. The Bitcoin price continues to move within the cost basis quantile range of 0.85-0.95, which corresponds to a price range of 108,400 to 117,100 USD.
Market analysis and alerts
Analysts at Glassnode warn that a downtrend could be imminent if prices fail to stay above $117,100. Historically, a price that fails to hold this important area can result in prolonged corrections. A sustained decline below USD 108,000 would be a clear warning signal of structural weakness in the market.
Despite the concerns, spot trading activity is showing an increase during recent market moves and reaching the highest levels of 2025. This suggests that investors remain interested in Bitcoin. Meanwhile, Bitcoin futures have seen one of the largest declines in open interest, with over $10 billion lost in leveraged positions.
Derivatives market and defensive behavior
Glassnode describes the decline as a “derivatives market reset,” comparable to several large declines in the past, including the market collapse in May 2021 and after the FTX crisis in November 2022. Options data also shows an increase in defensive positioning ahead of the market decline, with the put/call ratio rising above 1.0 and closing at around 1.4.
For a sustainable market recovery, analysts are convinced that renewed inflows into spot Bitcoin ETFs as well as steady on-chain accumulation are crucial. Only by restoring investor confidence can the Bitcoin market be stabilized in the long term. Comprehensive analyzes and comparisons of the current market situation underline the urgency of keeping the fundamentals in focus. Bitcoin remains a dynamic and often volatile investment option, offering both risks and opportunities as the market continues to evolve.
For more information on the current situation and underlying factors, you can visit fxstreet.com(https://www.fxstreet.com/cryptocurrencies/news/bitcoins-historic-leverage-flush-could-set-the-tone-for-structural-recovery-202510152155).