Bitcoin Hits $126,000 Peak Amidst Bear Market Predictions
Bitcoin recently surpassed the $126,000 mark, setting a new all-time high. However, it quickly retraced to around $121,000, leading to significant liquidations and speculation about a potential bear market.
Market Predictions
- An anonymous prediction from December 2023 suggested a peak in October 2025, which has now come true.
- If historical patterns repeat, a bear market low is expected 364 days post-peak.
Liquidity Concerns
- Market analyst Doctor Profit warns of a precarious phase despite bullish trends.
- The Reverse Repo (RRP) market has fallen from $2.2 trillion to $8–10 billion, indicating possible liquidity issues.
- US banks face approximately $395 billion in unrealized losses as of Q2.
Exchange-Traded Fund Inflows
- Recent inflows into ETFs include over $1 billion in Bitcoin and $200 million in Ethereum.
- Doctor Profit cautions that money market fund inflows might drain broader market liquidity.
Insider Selling and Market Sentiment
- Increased insider selling suggests possible market manipulation and a cycle peak.
- Despite retail investor optimism, experts see a bearish macro-level outlook for crypto and stock markets after Q4.
