Bitcoin is at risk of finishing the year 2023 with losses.

Risk of Bitcoin Ending the Year with Losses

The world's largest cryptocurrency, Bitcoin, is at risk of finishing 2023 with losses. Once seen as a beacon of hope for investors due to its potential for high growth and inflation protection, Bitcoin has experienced a significant loss in value this year.

Calculations and Market Situation

Bitcoin has dropped approximately 30% from its peak in 2025, recently falling below the $90,000 level. This indicates that ETF investors are at a loss and that there is an increasing demand for downside protection.

What Caused the Decline in Bitcoin?

There are various hypotheses regarding Bitcoin's loss in value this year. In addition to the liquidation of leveraged positions and a widespread psychological collapse in the markets, George Mandres (a senior trader at XBTO Trading) states that "the market experienced a very deep shock on October 10." This situation has led to a loss of confidence among market participants in liquidity.

Market Weaknesses and Future Expectations

The head of research at the digital asset analysis company BRN, Timothy Misir, stated that the effects of weak growth data from Asia and declines in Chinese stocks have caused global technology valuations to drop. Under these conditions, cryptocurrencies are observed to reflect the macroeconomic situation rather than serve as hedges.

Bear Market Expectations

Augustine Fan (director at SignalPlus) expressed concerns about an impending bear market while highlighting Bitcoin's potential to replicate its remarkable recoveries in the future. Brendan Fagan (Bloomberg Markets Live FX Strategist) predicted, "Bitcoin maintaining the $90,000 level could signal an upward shift in the risk perception of the digital asset space."