Cryptocurrencies experienced a shocking development after the sharp drop on October 10, which clearly indicates that the current correction may be just the beginning of a larger decline. The Bitcoin price has definitively broken short-term lows from August and September, with the correction already exceeding 16%, according to TradingView data.

Cryptocurrencies enter a deep correction

Since the start of the cycle in November 2022, we have witnessed only two major phases of price decline of approximately 30%. The first lasted from March to August 2024 and the second from January to April 2025. However, the problem is not only the scenario itself but especially its timing.

Both previous corrections were preceded by more dynamic growth. Before the first correction, the price increased by 200% over 180 days, and before the last correction by 120%. This time, however, growth of only 68% was recorded in the same period, clearly showing a slowdown in growth.

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How the Bitcoin price may develop by year-end

If the BTC price continues to correct, a potential surpassing of the historical high may be postponed indefinitely. A scenario in which Bitcoin repeats a 30% drop could lower its price to 87,000 dollars. However, the current cycle phase is different, as a rebound to 40,000 dollars is less likely for many investors.

According to CoinMarketCap data, cryptocurrencies have experienced double-digit declines in most cases over the past week. Even the largest cryptocurrencies lost approximately 25% in a short time. This drop indicates increased volatility and the need for caution when investing at this time.

Many analysts and investors still believe that Bitcoin could reach its all-time high this year. The main factor will be the pace of recovery and the market’s reaction to previous losses. The current situation clearly indicates increased volatility and the need for caution when investing. Market signals show that the correction is not just a short-term matter but part of a broader cycle that could significantly affect expected gains.