Bitcoin slides under $92,000 as fears of historic four-year cycle mount

Bitcoin extended its losses this week, dropping below $92,000 as investors grow concerned about a historical pattern of post-halving price declines.

The cryptocurrency has fallen over 26% since its record high of $126,000 in early October. The sell-off is leading many to question if this is a temporary dip or the start of a steeper, multi-year cycle downturn that has historically followed its “halving” event.

Analysts are divided. Bernstein analysts call the drop a “self-fulfilling prophecy” but believe it’s a short-term correction, not a major crash. They point to strong institutional investment in Bitcoin ETFs and supportive US legislation as reasons for optimism.

Compare Top Forex brokers and start trading and investing with a trusted partner

However, research firm 10X Research urged “maximum caution,” warning that a break below $93,000 could trigger a more severe sell-off. They argue the current market aligns with indicators that have signaled major peaks in the past.

In a notable show of confidence, the company MicroStrategy purchased an additional 8,178 bitcoins for $835 million during the downturn.