Analysis: Three structural factors amplified the current Bitcoin decline.

Bitcoin has recently experienced a sharp sell-off, retreating more than 50% from its all-time high of approximately $126,200 in October 2025. Analysts believe three structural factors amplified this decline: 1. Some argue that Asian funds may have triggered the sell-off, establishing highly leveraged long positions by borrowing low-cost Japanese yen and allocating funds to Bitcoin ETF-related options and crypto assets. When Bitcoin's upward momentum stalled and financing costs rose, margin calls and forced selling exacerbated the market decline; 2. Some banks may have been forced to sell assets to hedge risks associated with Bitcoin structured products, creating a "negative gamma" effect and amplifying the downward momentum; 3. Some mining companies are shifting towards AI data center businesses while simultaneously selling Bitcoin assets, altering the structure of the Bitcoin mining industry. (Cointelegraph)