Bitcoin continues to fall vertically, is the bull cycle over?

(Dan Tri) - Bitcoin prices have been fluctuating strongly and sinking into the red. Notably, the latest statement from the Fed Governor revealed a notable change in the way the agency views digital currency.

This morning (October 23), Bitcoin suddenly dropped to over $106,000/BTC. This price brought the market capitalization down to $2,166 billion.

Recently, the Governor of the US Federal Reserve (Fed) Christopher Waller said that cryptocurrencies have become part of the payment and financial system. This marks a notable change in the agency's management perspective.

Mr. Waller's remarks represent a departure from the cautious stance that U.S. regulators have long maintained toward digital assets.

The Fed has historically approached cryptocurrencies with skepticism, citing concerns about volatility, illicit financial risks, and consumer protection.

However, the latest statement from a Fed Governor shows that the agency is gradually recognizing the increasingly important role of the digital currency sector.

In fact, many major financial institutions have begun offering custody, trading and investment services for cryptocurrencies, reflecting the growing integration of this asset class into the traditional financial system.

Bitcoin prices fluctuate strongly (Photo: Reuters).

The cryptocurrency market continues to be in the red as many major coins have fallen sharply. Experts say that a part of retail investors are still acting according to the traditional “4-year cycle rule” of bitcoin, contributing to the pressure on the whole market.

The sharp decline began after US President Donald Trump threatened to impose more tariffs on China, causing the market to record liquidation volume, about $19 billion in just one day.

Historically, bitcoin prices have moved in four-year cycles, corresponding to halving events, when the reward for miners is cut in half. Each cycle typically includes a peak after the halving is complete and then declines in the following years.

With bitcoin hitting a record high of $125,000 in October, many believe the current cycle is nearing its end.

“This sell-off is partly driven by traders who still believe in the four-year model. It has been almost four years since the previous cycle peak and amid global trade uncertainty, they tend to take profits to protect their positions,” Matthew Nay, an analyst at research firm Messari, said in a report.

Jonathan Morgan, an expert at the Stocktwits trading platform, said this could be the result of mechanical trading where investors buy and sell based entirely on cyclical patterns.

Meanwhile, Jasper De Maere, a strategist at financial firm Wintermute, said the strategy is outdated. He said the impact of the halving is no longer evident because the rewards for miners are now too small compared to the scale of global transactions.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-lien-tuc-roi-thang-dung-chu-ky-tang-gia-lieu-da-ket-thuc-20251023111353157.htm