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Bitcoin News Update: Navigating Crypto’s Balancing Act to Steer Clear of 2018’s Downturn as Global Economic Conditions Evolve

Bitcoin News Update: Navigating Crypto’s Balancing Act to Steer Clear of 2018’s Downturn as Global Economic Conditions Evolve

Bitget-RWA2025/11/23 06:52
By:Bitget-RWA

- Crypto markets avoid 2018-style collapse as macro-driven cycles and reduced speculation prolong volatility, per Lyn Alden. - Fed policy uncertainty and leveraged ETF launches highlight risks and innovations amid $2.2B crypto outflows and $914M liquidations. - MSTR's BTC gains and Gunden's $1.3B sell-off reflect divergent investor strategies, while Munari's Solana project targets long-term adoption. - Analysts split between 65-70% Bitcoin retracement forecasts and prolonged cycles driven by institutional

The cryptocurrency market is currently experiencing volatility, but has so far avoided the kind of "massive capitulation" that has marked previous cycles,

. Although Bitcoin has fallen 22% from its high in October and the broader market is correcting, Alden believes that the lack of speculative mania makes a sudden, 2018-like crash less probable. "This cycle might last longer than many anticipate, since it's being influenced more by macroeconomic trends and genuine interest in the asset than by the halving," she explained in a recent interview.

Bitcoin News Update: Navigating Crypto’s Balancing Act to Steer Clear of 2018’s Downturn as Global Economic Conditions Evolve image 0
Recent developments in the market underscore this difference. dropped below $87,000 at the end of November, , with $703 million of that coming from long positions. At the same time, , with $2.2 billion withdrawn from funds—marking the second-largest weekly outflow ever. Still, some experts point to signs of strength. , expecting prices to dip below $70,000, but history shows markets often move against prevailing sentiment. , now at a yearly low of 15 out of 100, has previously preceded strong recoveries after periods of extreme fear.

The Federal Reserve's future policy remains an unpredictable factor.

that markets are being driven by "frothy 'animal spirits'" tied to hopes for rate cuts, reminiscent of risks seen in late 2018. He identified crypto as a "frontier for liquidity and speculation" that will likely react first to changes in Fed policy. this year, along with Ethereum's 41% decline, highlight the sector's vulnerability to macroeconomic shifts.

Amid the ongoing volatility, new products and strategies are being introduced.

3x leveraged Bitcoin and ETFs in Europe, giving investors a way to gain amplified exposure despite the downturn. At the same time, , seeks to make wealth accumulation easier with a fixed-supply model and Delegated Proof-of-Stake staking.

Investor actions are also shifting with the market. MicroStrategy (MSTR), which holds more Bitcoin than any other public company,

, thanks to mark-to-market gains as its Bitcoin holdings reached 640,808 coins. CEO Michael Saylor has described the company as a "pressure valve" for the crypto sector, given the limited on-chain alternatives. On the other hand, —sparked by remarks from Ray Dalio—led early adopter Owen Gunden to sell $1.3 billion in BTC, adding to short-term selling pressure.

The market's direction will depend on how these factors interact. While

, forecast a 65–70% retracement in Bitcoin over the next two years, others anticipate a longer cycle fueled by institutional investment and macroeconomic changes. With the Fed's stance and corporate appetite for Bitcoin still developing, investors are treading carefully between the extremes of capitulation and resilience.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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