Bitcoin Under $85,000: Could This Be the End of Cryptocurrencies?

A Decline Exacerbated by Macroeconomic Tensions

The decline isn't limited to Bitcoin. Following in the wake of the leading cryptocurrency, Ether has dropped 33% since October 7, Solana nearly 40%, and the total market capitalization has contracted by about $1.2 trillion over six weeks. On October 10, $19 billion vanished within twenty-four hours.

This lack of confidence is largely explained by US economic data. Delayed employment figures show 119,000 new jobs created in September, compared to the 50,000 that were expected. « The market is readjusting risks, reacting to macroeconomic data, » summarizes Vincent Liu, Chief Investment Officer at Kronos Research, noting that « liquidity remains thin and profit-taking is amplifying the movement. » With these figures, expectations of a Fed rate cut in December have weakened. According to CME's FedWatch tool, the likelihood of a reduction limited to 25 basis points is only 33%. In this context, risk assets have declined, pushing the « Fear & Greed Index » into the « extreme fear » zone.

Technical thresholds under pressure

Analysts Dismiss a Collapse Scenario

Despite the magnitude of the correction, none of the experts mentioned describe it as a lasting rupture. Antoine Fraysse-Soulier says, « I wouldn't use the term alarming, » noting that the current decline « is not unusual. » Lukas Enzersdorfer-Konrad, CEO of Bitpanda, shares this view: « Bitcoin is in an expected correction phase. This period generally aligns with profit-taking by investors. » For him, the movement is also part of an end-of-year cycle and an increasing correlation of Bitcoin with major asset classes: « Its trajectory typically follows that of stock markets. » As for long-term prospects, both leaders remain decidedly optimistic. According to Etoro's chief analyst, BTC « can still reach new records, » around $150,000. For the Bitpanda CEO, a path « up to $500,000 » is not out of the question, especially as « governments are starting to talk about holding crypto reserves, and banks are becoming increasingly interested."

Institutional Investors Capitalize on Volatility

As individuals question the market, several major players have taken advantage of the dip to strengthen their positions. MicroStrategy acquired 8,178 bitcoins for $835.6 million, marking its largest operation since July, with Michael Saylor, its executive chairman, confirming the accumulation strategy on CNBC. El Salvador also made an extraordinary purchase of 1,090 bitcoins, amounting to approximately $100 million. In this context, some investors see an opportunity rather than a threat. « In any asset that structurally appreciates over time, corrections are opportunities, » notes Jad Comair, founder of Melanion Capital. Cameron Winklevoss, co-founder of Gemini, goes even further: « This is the last time you'll be able to buy Bitcoin for less than $90,000."

A Tense Situation, But Not Final

While the current correction is severe, there is no indication yet that it signals the end of a structural cycle. However, the market remains under pressure: several technical thresholds have been breached, liquidity is reduced, and uncertainty about US interest rates remains high. The upcoming decisions by the Fed will be crucial for what follows. This period is uncomfortable, but it does not mark the end of Bitcoin. The cryptocurrency remains more dependent than ever on macroeconomic trends—and the patience of its investors.