21Shares: Bitcoin has not entered a severe bear market; fluctuation and stabilization may persist until year-end

Maximiliaan Michielsen, an analyst at 21Shares, evaluates Bitcoin’s decline below 100,000 USD. He views it as a temporary correction despite the volatility possibly lasting until the end of the year.

The decline can be attributed to forced liquidations, large investor sell-offs totaling 12 billion USD, and significant ETF outflows of 866 million USD. Moreover, 32 billion USD has been lost in deleveraging since October.

Despite current selling pressures, the long-term outlook for Bitcoin is optimistic due to strong fundamentals and reduced selling from long-term holders. Analysts do not foresee immediate catalysts for a deeper bear market.