The crypto market could undergo a reset phase before the next bull run

The crypto market is entering a transition phase. A recent analysis suggests that a “reset” is necessary before any new bull run. The contraction of global liquidity and the macroeconomic context weigh on the current dynamics. This correction could fit into a global cycle.

A market under pressure due to global liquidity

While bitcoin could drop below $60,000, the current slowdown does not originate from the crypto ecosystem itself, but from a key macroeconomic factor: the contraction of global liquidity.

Indeed, the market must go through a “reset” before any lasting recovery. This dynamic fits into an environment marked by several forces that capture available capital :

• Restrictive monetary policy and the Fed’s balance sheet reduction ;
• Financial flows directed toward other segments such as traditional markets ;
• Tax deadlines and financial operations absorbing liquidity.

In this context, even bitcoin is under notable pressure after correcting from its recent highs.

This situation is reflected in investor sentiment. The Fear & Greed index is in the “extreme fear” zone, indicating widespread distrust. Volatility remains high and rebounds lack continuity. This phase is described as an adjustment stage, during which the excesses accumulated during the previous rise are gradually absorbed.

A market stronger than it seems

Despite this tense climate, one reality is often underestimated: the fundamentals of the crypto market remain strong. The cycle is not over; it is going through an intermediate phase before a potential recovery. This interpretation repositions the current correction as a structural phenomenon rather than a rupture.

It is also important to emphasize the market’s transformation, with a more marked institutional presence and increased dominance of bitcoin. These elements indicate an evolution towards a more structured ecosystem, less exposed to the speculative excesses of past cycles. Such a phase could thus represent an accumulation period for some players anticipating a return of flows.

The crypto market seems engaged in an adjustment phase rather than a rupture. If macroeconomic conditions improve, a gradual return of liquidity could reignite the dynamics. In this scenario, a return of bitcoin to $100,000 becomes conceivable as the cycle finds a more favorable balance.