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Bitcoin's Shallowest Bear Market Yet?
9 Jun
Summary
- Bitcoin's current bear market is its shallowest historically, down 50% from its peak.
- Institutional investors and ETFs are stabilizing Bitcoin, leading to shallower drawdowns.
- Experts suggest the bear market isn't over, citing ETF outflows and macro pressures.
Bitcoin has entered its shallowest bear market in history, with prices declining 50% from their October 2025 all-time high. This marks a significant shift from previous cycles, where drawdowns often exceeded 90%.
Experts attribute this trend to Bitcoin's growing institutionalization, with exchange-traded funds (ETFs) and corporate balance sheet inclusions providing stability and deeper liquidity. This has led to more muted volatility and shallower drawdowns over the past two years.
However, the bear market is likely not over. Analysts highlight continued ETF outflows, macroeconomic tightening, and liquidity rotation as critical factors that will determine the bear market's duration. A bearish scenario could see Bitcoin retesting levels around $55,000 and $45,000.
Key psychological levels to watch include $60,000, with the $62,000 support recently failing. Market makers suggest that with limited technical levels in the $50,000 to $59,000 range, current price direction is primarily influenced by market flows.
