Bitcoin's Bull Market Faces Potential Risks Amid Market Volatility

According to Cointelegraph, Bitcoin's bull market remains robust, yet a decline below the $100,000 mark could pose significant challenges, as highlighted by Alex Thorn, head of research at Galaxy Digital. Thorn emphasized that while the bull market's structure is currently intact, it is at a critical juncture where market sentiment could rapidly change. He warned that a drop below $100,000 might trigger anxiety, potentially jeopardizing the ongoing bull market. Despite the substantial liquidation event on October 10, Thorn asserted that the recent pullback was not rooted in Bitcoin's fundamentals. He explained that the cryptocurrency is behaving more like a macro asset, with its price movements influenced by broader economic factors rather than intrinsic value changes. Thorn acknowledged the presence of short-term volatility but maintained that the market's long-term structure is bolstered by increasing institutional interest. He described the current phase as a 'post-100K era,' where Bitcoin is no longer considered an early-stage investment, and there is a growing passive demand for the digital asset. Thorn also challenged the notion that Bitcoin adheres to its historical four-year cycle, suggesting that the market dynamics have evolved. He noted that the current market is characterized by lower realized volatility, greater institutional ownership, and a slower pace of passive accumulation. This shift indicates a stronger foundation for Bitcoin, diverging from past cyclical patterns. Thorn's insights underscore the importance of monitoring macroeconomic factors that could influence Bitcoin's trajectory, as the market navigates this pivotal period.