TD Cowen: Bitcoin Proved Its Strength with a Decline

Recently, the sharp fluctuations in the cryptocurrency market continue to arouse great curiosity among investors. The decline in Bitcoin has been evaluated by TD Cowen analysts as having "proven its strength." Analysts point out that the rapid recovery after the recent "flash crash" once again demonstrates the resilience of the crypto market.

The sharp decline at the beginning of October, due to economic uncertainties, caused a liquidation of approximately $19 billion in the market. However, this collapse provided an important signal regarding the maturation and resilience of the crypto ecosystem. The report published by TD Cowen states that despite the large selling wave, exchanges continued to operate almost uninterrupted.

According to the report, following Donald Trump’s announcement about imposing a 100% import tariff on China, the total market value declined by more than 10%, leading to an initial liquidation of $10 billion. However, analysts note that leading cryptocurrencies such as Bitcoin and Ethereum maintained their reliability during this process. For instance, Bitcoin experienced a temporary decline of 15%, yet it closed the day with only an 8% loss.

The report also emphasizes that the global adoption of Bitcoin continues to rise. TD Cowen stated that the number of registered accounts owning digital assets in Japan has quadrupled over the last five years, exceeding 7.9 million. It is noted that this increase has prompted the country’s Financial Services Agency (FSA) to reconsider its current decision to ban banks from investing in digital assets like Bitcoin.

In light of this data, analysts predict that the price of Bitcoin could reach approximately $141,000 by December 2025. According to TD Cowen, the recent "flash crash" has once again highlighted the resilience of the crypto market and its long-term growth potential. Critical points that investors should closely monitor include the performance of Bitcoin and Ethereum as well as market conditions.