Bitcoin to crash to $80000, loses all the gains made in 2025 as crypto winter sets in; Drop under $100K sends market into 'extreme fear' territory

Bitcoin’s sharp fall below the crucial $100,000 level has sent shockwaves through the crypto market, plunging sentiment into 'extreme fear' and triggering warnings of a deeper downturn. Analysts now predict Bitcoin could crash to $80,000, wiping out all the gains made in 2025. It’s been a little more than a month since bitcoin reached its record high of $126,272.76 on October 6, but the momentum has evaporated just as quickly. That peak now feels far removed from the current reality.

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In the week ending Nov. 14, bitcoin tumbled more than 9%, sliding to under $92,000 by Monday. According to Market Watch, the sharp drop - driven in part by major crypto 'whales' offloading their holdings - dragged the cryptocurrency through several important support levels and signaled a decisive shift in market sentiment.


Last week, bitcoin officially slipped into 'bear market' territory, falling more than 20% from its recent peak, reported MarketWatch, Over the weekend, the cryptocurrency also flashed a bearish 'death cross', a technical signal that occurs when the 50-day moving average drops below the 200-day moving average. To make matters worse, bitcoin has now erased all of its gains from 2025, underscoring the severity of its downturn.

Market sentiment has deteriorated rapidly. Traders are now aggressively seeking downside protection around the $85,000 and $80,000 levels, with demand for put options surging, reported Bloomberg. According to data from Coinbase-owned Deribit, as quoted by Bloomberg, protective contracts set to expire later this month are experiencing particularly strong activity as investors brace for further declines.

WHAT IS CRYPTO WINTER?

A crypto winter refers to a prolonged period of depressed cryptocurrency prices, low trading activity, and weakened investor confidence. Similar to a stock market downturn, it typically follows a major crash or bursting of a speculative bubble. During a crypto winter, funding for blockchain projects dries up, market sentiment turns negative, and recovery can take months or even years. The term became widely used after the 2018 crash, when Bitcoin plunged and the broader crypto market endured an extended stretch of depressed prices and sluggish trading activity.

HAS THE CRYPTO WINTER ARRIVED?

All of these factors point to growing negativity around Bitcoin - but that does not necessarily signal the start of a 'crypto winter'. Not all experts agree that the cryptocurrency market is entering a downturn. Louis LaValle, CEO of crypto investment firm Frontier Investments, offered a different perspective on Bitcoin’s recent struggles:

"I don’t think we’re in a crypto winter. I think we’re watching bitcoin grow up," LaValle told MarketWatch.

"This doesn’t look like the classic pattern where everybody gives up, prices collapse 70%-80%, volumes die, and interest disappears. What we’re watching in bitcoin right now is a change in how the asset is owned and traded, a market-structure transition, not a cyclical bear market," he added.

CRYPTO MARKET IN EXTREME FEAR TERRITORY

The market has entered 'extreme fear territory' after Bitcoin fell below the key psychological level of $100,000, according to Kelly. However, he noted that investor interest remains strong. Periods like this are normal following sustained high returns, similar to the market lows seen in January 2023.

Historically, Kelly said, such extreme fear often presents a prime opportunity for long-term investors to deploy capital, using strategies like dollar-cost averaging over the coming quarter to build positions in Bitcoin, reported MarketWatch.