Market Dynamics and Institutional Involvement
Bitcoin experienced an 18% drawdown in October 2025, triggered by cascading liquidations and geopolitical stress, impacting major assets and prompting institutional involvement.
Analysts suggest this marks a mid-cycle reset, not a bear market, with renewed institutional interest and long-term holder accumulation likely.
The Bitcoin's recent 18% drawdown marked a mid-cycle reset, driven by leverage liquidations. Analysts highlight institutional inflows and technological advancements as key elements reshaping the market conditions, influencing the dynamics of Bitcoin and overall crypto-assets.
Key Players and Market Outlook
Key Players
Key players, including Geoffrey Kendrick and Matthew Sigel, emphasize a shift towards renewed institutional engagement and market stabilization. Their insights indicate a strategic recalibration of digital asset portfolios, anticipating a potential increase in Bitcoin's value by year's end.
"This looks more like a mid-cycle selloff than the start of a bear market ... Leverage has normalized, on-chain activity is rising, and digital asset treasury accumulation is sustaining." - Matthew Sigel, Head of Digital Assets Research, VanEck
The financial impact is evident as exchange reserves drop, signaling reduced sell pressure and increased institutional participation. The industry observes a return of capital as long-term holders accumulate, contributing to market stabilization following structural adjustments.
Institutional Analysts' Forecasts
Institutional analysts forecast bullish market trends. Their projections are buoyed by Bitcoin's price expectations exceeding $150,000 by year's end. Geoffrey Kendrick of Standard Chartered, for instance, stated, "My official forecast is $200,000 by the end of the year, and even in the bear case, I still see Bitcoin ending well north of $150,000." This reflects a broader adoption by financial entities, responding to cyclical resets and evolving liquidity dynamics.
On-Chain Data and Historical Patterns
On-Chain Activity
On-chain data presents a picture of normalized leverage and increased miner activity. Observers note miner-to-exchange transfers rising by 14%, indicating new financial strategies among miners, potentially driven by AI integration into the crypto space.
Accumulation Phases
Historically, large liquidations have led to accumulation phases, as seen in 2018 and 2021. The current environment suggests similar patterns, with digital asset markets maturing through innovative technological shifts and sustained corporate interest, fortifying long-term growth prospects.
Insights from VanEck
VanEck regularly shares updates and insights on platforms such as Twitter, which have influenced the factors discussed regarding Bitcoin market dynamics.