Bitcoin is currently trading at around $104,073.96, suggesting a 3.04% increase in the last 24 hours. Bitcoin recently dropped below $100,000 for the first time since June. The decline has raised concerns of another prolonged bear market in the cryptocurrency market. The long-term holders have sold $41.6 billion worth of assets during this downturn. The selling pressure is one of the biggest divestment periods for experienced investors. BTC Price, Source: CoinMarketCap Bitcoin was down over 20% from its October high of over $126,000. The ancient Bitcoin wallets contributed to the decline by selling more than $1 billion. Crypto analyst PeeCowYay highlighted this as the main factor supporting the current dip. Market liquidations over the past 24 hours exceeded $1.3 billion. Despite the current market conditions, some analysts find grounds for optimism. Matt Hougan, chief investment officer at Bitwise, terms the current state of affairs as a story of two markets. Retail investors have entered what he calls ”max desperation” mode. Leverage blowouts have created extreme stress in the crypto-native retail segment. Hougan claims this represents the most depressed retail sentiment he has witnessed. Nevertheless, institutional interest remains strong. According to Hougan, there remains enthusiasm among financial advisors and institutional players for crypto allocations. The asset class has delivered strong returns over the course of one year. According to him, the market has to undergo a retail flush-out first before it can start recovering. Hougan proposed that it is still possible to set a new high record before the end of the year, even with the prevailing conditions. Mining Operations Under Severe Pressure This is the lowest profitability crisis for Bitcoin miners since April. The recent $7,000 price drop, from $107,000 to $100,000, has significantly squeezed margins. Digiconomist estimates that energy used to mine costs between 40% and 60% of all mining costs in the form of electricity today. Difficulty in the network and minimal transaction fees have presented difficult circumstances. Mining operations have responded by liquidating holdings. According to current statistics, miners have sold $172 million worth of Bitcoin from their wallets. This selling adds more pressure to an already weak market structure. Most of the operations are reassessing their strategies to survive the crisis. The profitability squeeze compels mining organizations to make tough choices. Others will be forced to close some of the ineffective equipment. Others may relocate to areas where electricity is cheaper. This industry consolidation has the potential to accelerate if the current conditions persist. The profitability squeeze forces difficult decisions for mining companies. Some may need to shut down less efficient equipment. Others might relocate to areas with lower electricity costs. The industry consolidation could accelerate if conditions persist. Can Bitcoin Plummet to $70K? According to InvestingHaven , Bitcoin is potentially falling to $70,000-$75,000. These levels are pointed out by Tyler Rachey of Sevens Report and 10X Research analysts in worst-case scenarios. Peter Brandt gives a 25% chance of such a serious pullback .
