Bitcoin Correction: Experts See Normal Market Movement Despite 35 Percent Price Decline

Significant Correction Following All-Time High

The Bitcoin price has undergone a sharp correction since early October, declining approximately 35 percent^[2]. After a pullback to $80,000, bulls managed to bring the price to $89,225 at the beginning of the week^[1]. This marks the first notable recovery since abandoning the psychologically significant $100,000 chart level^[1].

Crypto Veteran: "A Global Financial Crisis Every 18 Months"

Anthony Pompliano, known for his "The Pomp Podcast," places the current correction in historical context. The Bitcoin advocate explains that Bitcoin has experienced 21 declines exceeding 30 percent over the past decade, including seven corrections of more than 50 percent^[2].

"It's like a global financial crisis every 18 months over the past decade. Bitcoin holders are accustomed to this. But the people from Wall Street are not. They are unfamiliar with this volatility," Pompliano states^[2]. He views the 35 percent decline from the all-time high as a "pretty healthy correction"^[2].

Potential Bottom Formation at $82,000

Pompliano estimates that the bottom could be reached at $82,000, potentially followed by a prolonged sideways movement before Bitcoin gradually climbs again^[2]. The previous week's low around $80,000 is now considered a critical level that must be defended^[1].

In the coming trading weeks, sustained high trading volatility is expected, with the U.S. Federal Reserve's interest rate decision serving as a decisive factor^[1]. Bitcoin has shown stability in recent days, trading around the €30,000 mark^[2].

Actual Selling Pressure Lower Than Statistics Suggest

Currently, 35 percent of Bitcoin holdings are underwater, a level last reached when BTC was trading at $27,000^[3]. However, the actual liquid supply is considerably lower than raw figures suggest.

Of the 19.95 million Bitcoin in circulation, 3.73 million BTC are held by public and private companies, ETFs, and countries. An estimated 3.0 to 3.8 million BTC are considered permanently lost, representing 15 to 19 percent of total circulating supply^[3]. Together, these factors remove approximately 33 percent of all Bitcoin from liquid circulation^[3].

Institutional holdings, particularly ETF and corporate reserves, are not reactive to short-term volatility, as they follow long-term oriented mandates^[3]. This means that actual selling pressure is significantly lower than the statistics on loss-making positions initially suggest.

Outlook on Further Market Development

Whether the current development represents sustainable bottom formation or merely a technical countermovement remains to be seen^[1]. For experienced Bitcoin investors, however, the current correction represents no exceptional situation but rather fits the historical pattern of high volatility.