Crypto Bear Market Alert: Bitcoin Crashes Below $95,000 in Major Sell-Off
The global crypto world woke up to a shock on Friday morning as Bitcoin tumbled below the crucial $95,000 mark. With prices falling sharply and investor confidence dipping even further, the big question everyone is asking is simple: Are we slipping into a serious crypto bear market?
In the past few weeks, the world’s largest cryptocurrency has struggled to regain momentum. And now, with massive exchange-traded fund (ETF) outflows, weak demand from both institutional and retail investors, and heavy selling from crypto whales, the pressure on Bitcoin has intensified dramatically.
According to CoinGecko, Bitcoin is now down 8% in the last 24 hours and has fallen over 24% from its all-time high of $126,200, which it hit just five weeks ago. The brutal sell-off has also triggered huge losses in the derivatives market. As per CoinGlass, more than $1.24 billion worth of crypto long positions were wiped out in just a day.
But the turbulence doesn’t stop at crypto. Global financial markets are showing similar signs of stress. The S&P 500 slipped nearly 1% in pre-market trading, while gold — usually seen as a safe haven — has dropped 2.76% today. This widespread weakness raises bigger concerns about whether a broader shift in market sentiment is underway.
Bitcoin’s Losing Streak Deepens — And the Trend Looks Worrying
Bitcoin’s fall below the psychological $100K mark earlier this week created immediate panic among traders. As of today, the world’s top cryptocurrency is down more than 10% since Monday, setting up what could become its third straight weekly loss on the charts.
This steady drop has also shaken investor sentiment on platforms like Myriad, a prediction market where users previously believed Bitcoin was far more likely to hit $115,000 before ever dropping to $85,000. But in just four days, that confidence has crashed from 71% to 46%, making the fear of a crypto bear market more real than ever.
(Editor’s note: Myriad is run by Dastan, which also owns Decrypt.)
Market analysts are not optimistic. Adam Chu, chief researcher at options analytics platform GreeksLive, gave a clear and alarming view:
“Judging by market movements over the past three months, we must conclude that we are currently in a bear market.”
Chu further explained that while investors were divided earlier this week, put options — generally used by traders who expect prices to fall — are now dominating the market after Bitcoin’s sharp break below $100,000.
This shift suggests investors are preparing for more downside rather than a quick recovery.
Key Metrics Flash Red — Is This the Start of a Larger Crypto Collapse?
According to experts, several major on-chain indicators are already confirming that the crypto environment is behaving exactly like classic bear market territory.
CryptoQuant analyst Maarten Regterschot stated that the platform’s Bull Score is pointing strongly toward negative conditions:
“Eight out of ten key on-chain metrics are bearish. From falling stablecoin liquidity to fading network activity and capital exiting derivatives, this setup mirrors the late 2021 and early 2022 cycle.”
This comparison is crucial because the 2021–2022 period eventually led to a full-blown crypto bear market, where Bitcoin fell over 70% from peak to bottom.
Right now, many of the same warning signs are flashing again:
1. Stablecoin Liquidity Is Shrinking
Stablecoins act as the fuel for crypto trading. When their liquidity drops, it usually means less buying power is entering the market — a classic early sign of a crypto bear market.
2. Network Activity Is Fading
Lower network usage often means traders are staying away. This usually happens when market confidence is low.
3. Derivatives Capital Is Exiting
In the last few days, traders have been pulling their money out of highly leveraged positions. This signals a shift toward fear and caution.
Perpetual Market Trends Indicate Short Sellers Are Taking Control
One of the biggest clues about the direction of any crypto trend comes from the perpetual futures market. Here, two important indicators stand out:
● Rising Open Interest
Open interest — which measures how many futures positions are still active — has been steadily climbing since the massive $19 billion liquidation event on October 10. Rising open interest during a falling market usually indicates that short sellers (those betting on prices going down) are increasing their positions.
● Declining Cumulative Volume Delta (CVD)
CVD tracks the difference between buy and sell orders. A falling CVD signals that sellers are aggressively dominating the market.
Together, these two metrics paint a clear picture:
Short sellers are in control, and the sentiment in perpetual markets is turning decisively bearish.
This aligns perfectly with the growing belief that a crypto bear market may already be underway.
U.S. Demand Weakens as Coinbase Premium Turns Negative
Another major concern is the Coinbase Premium, which measures the price difference between Bitcoin on Coinbase (a popular U.S. exchange) and global exchanges. When the premium is positive, it means U.S. buyers are showing strong demand.
But for the past few days, the Coinbase Premium has turned negative — meaning U.S. investors are now buying less aggressively than global traders.
Historically, a negative premium has often signaled:
- Lower institutional buying
- Reduced capital inflow
- A risk-off attitude among American investors
All of these factors reinforce the growing possibility of a prolonged crypto bear market.
So, Are We Officially in a Crypto Bear Market Now?
While not everyone agrees on whether Bitcoin has already crossed the neutral zone into a full bear cycle, the data is becoming increasingly difficult to ignore. With:
- Massive ETF outflows
- Falling investor confidence
- Shrinking liquidity
- Negative U.S. demand signals
- Increasing short-selling pressure
…many experts believe the crypto space is seeing the early stages of a deeper downturn.
Bitcoin could still bounce back — it has done so many times before — but for now, the momentum and sentiment suggest that traders should prepare for a possible extended period of weakness.
If the trend continues, the crypto bear market may not just be a possibility — it may already be here.
