Bitcoin Price Correction: A strong warning has come from the analyst community amid the latest round of negative sentiment in the bitcoin market. Prominent financial strategist and digital asset researcher Markus Thielen has stated that Bitcoin’s price might retrace to $96,000 in the next few months. This significant prediction comes at a time when people are concerned that the entire crypto market will collapse, sparking extensive debate over whether Bitcoin’s recent bull run can sustain itself and how healthy the broader digital asset ecosystem is.
This prognosis has caught the attention of retail traders, institutional investors, and market experts alike, as the leading cryptocurrency continues to face increased regulatory scrutiny, shifting macroeconomic conditions, and a lack of investor trust. A price drop like this doesn’t just mean that people are speculating about the price; it also raises significant concerns about Bitcoin’s short-term direction, its relationships to traditional assets, and its long-term value as digital gold.
Bitcoin’s Momentum Wanes Amid Slowing Inflows
Bitcoin (BTC) is presently trading between $67,000 and $70,000, and it has been powerful in the past few months. The debut of multiple U.S.-based spot Bitcoin ETFs, increased adoption by businesses, and higher demand in nations with unstable economies, such as Argentina and Turkey, have all contributed to the cryptocurrency reaching new heights. However, it appears that this rising momentum is starting to lose steam.
Thielen, Chief Research Officer at 10x Research and a veteran in the Cryptocurrency analytics industry, notes that Bitcoin’s price has been declining recently because momentum indicators are decreasing, ETF inflows are decreasing, and there is limited new demand from traditional finance (TradFi) participants. He says that Bitcoin is in danger of dropping back to its previous high of $96,000, which it touched briefly in late March before starting to move sideways. This might happen if new money doesn’t come into the market shortly.
Some people might argue that a drop to $96K is reasonable rather than catastrophic. Still, the warning should be viewed in light of the destruction of altcoins, the decline in total value locked (TVL) in DeFi, and the widening gap between market prices and on-chain activity indicators.
On-Chain Indicators Signal Bitcoin Price Risks
It’s essential to examine key on-chain statistics to determine how the Bitcoin Price Analysis marches to $96,000. Glassnode and CryptoQuant are two blockchain analytics tools that indicate long-term investors are starting to sell off some of their holdings. The MVRV ratio of Bitcoin (Market Value to Realised Value) suggests that the asset is overpriced, which makes a rapid decline more likely.
The fact that Bitcoin miner revenue has dropped significantly is making many even more pessimistic. After the 2024 halving, which reduced block rewards to 3.125 BTC, smaller mining businesses are struggling to make a profit, particularly in regions such as Texas and Kazakhstan, where energy prices are highly volatile. Miner capitulation might cause more selling pressure, which would lower prices and increase market uncertainty.
Macroeconomic and Geopolitical Pressures on Bitcoin
Macroeconomic factors are also exerting pressure on aspects beyond the blockchain ecosystem. The U.S. Federal Reserve’s hawkish stance on interest rates has kept yields on government bonds relatively high, drawing money away from riskier assets, such as cryptocurrencies. Bitcoin is struggling as the U.S. dollar index (DXY) rises, and concerns about inflation persist in developed economies.
Additionally, growing concerns about geopolitical tensions, particularly in Eastern Europe and the South China Sea, have heightened market volatility. Bitcoin has occasionally been viewed as a safe-haven asset; however, recent trends suggest that when the economy is under significant stress, investors still prefer easily convertible assets and carry low risk, such as gold and treasury bonds.
Bitcoin Struggles at Key Technical Support Levels
From a technical perspective, Bitcoin’s price movement has not yet established a clear higher high, which suggests that bullish momentum is waning. The MACD histogram has begun to turn negative, but the Relative Strength Index (RSI) remains neutral. Price has struggled to stay above its 50-day moving average, a key benchmark for institutional traders to follow.
If the market can’t hold the crucial psychological support at $65,000, analysts think it might quickly tumble to the $96,000 level, which is a significant Fibonacci retracement level. In the past, these types of pullbacks during bull markets have often led to subsequent rallies; however, they have also frequently caused people to panic and sell immediately.
Shifting Sentiment in the Bitcoin Market
The Bitcoin market mood is volatile. Short-term traders and high-leverage users on Binance and Bybit have begun to unwind, but long-term HODLers are intact. The Fear & Greed Index, a standard measure of public sentiment, has dropped from “Extreme Greed” in April 2025 to “Neutral” in early June.
Institutional inflows, which surged after the SEC authorised the iShares Bitcoin Trust ETF (IBIT) and the Fidelity Wise Origin Bitcoin Fund, have since stabilised. BlackRock and Grayscale, two of the largest ETF providers, are experiencing a decline in weekly volume.. This could mean that Wall Street’s excitement is fading.
Wider Effects on the Crypto Market
If Bitcoin drops to $96,000, it may have a significant impact on the entire cryptocurrency market, particularly Ethereum, Solana, Avalanche, and other altcoins. Altcoins typically exhibit a greater beta during both rises and falls, which means they may decline more rapidly if Bitcoin’s correction worsens.
Additionally, the DeFi and NFT ecosystems, which are already struggling to retain users, could run out of funds. Data from Messari shows that venture capital financing for crypto businesses has also slowed down in the second quarter of 2025. This illustrates the industry’s instability.
Will Bitcoin go back up? A Long-Term View
Although there are short-term concerns, many analysts still believe that Bitcoin’s long-term fundamentals remain healthy. More institutionalisation, Lightning Network use, and government interest in legalising Bitcoin are all positive signs.
Thielen himself has made it clear that his projection is not a downbeat outcome, but rather a technical adjustment in a market that is ageing. He believes that $96,000 might be a healthy correction that sets the stage for a new rise to $150,000 by the end of 2025, provided macroeconomic conditions stabilise and capital flows return.
Expert Reactions to Bitcoin Market Correction
People well-known in the crypto world have had varied reactions to Thielen’s prediction. Michael Saylor, the Executive Chairman of MicroStrategy, downplayed short-term price fluctuations, stating that his company still views Bitcoin as a strategic reserve asset. Cathie Wood, the CEO of ARK Invest, said that such corrections are typical for both new and mature sectors.
Bas they mature, a crypto influencer also had something to say. He said that the correction aligns with the four-year cycle hypothesis for Bitcoin and might be a “echo bubble” similar to the ones that occurred in 2013 and 2017.
