The cryptocurrency market continues to confront significant fluctuations following a severe downturn on October 10th, which was marked by rapid liquidations. This event triggered extensive liquidations across various positions in a matter of hours. Consequently, the ripple effects of these liquidations have led to broader market weaknesses, impacting many assets as they struggle to regain strength.

Adjusted Bitcoin Target

In light of these market conditions, Galaxy Research recently revised its year-end target for Bitcoin from $185,000 down to $120,000. They highlighted that 72 out of the top 100 cryptocurrencies by market cap are currently trading over 50% below their all-time highs. Various macroeconomic factors have exacerbated these challenges, leading to significant distribution by large holders, shifts towards alternative assets like AI and stablecoins, and overall underperformance of Bitcoin-oriented companies.

Despite this, Galaxy believes that if Bitcoin can hold around the $100,000 mark, the ongoing bull market, which has lasted nearly three years, could remain intact even if future gains might slow down.

“Still, we think nearing prior all-time highs before year-end is a reasonable target for short-term bulls.”

Market Reset Insights

Coinbase Institutional views the sell-off in October as a potential market reset rather than the peak of a cycle. They suggest that the removal of excess leverage could pave the way for stronger fundamentals, indicating that institutions are gradually re-entering the market. Additionally, the firm sees a “base-building” phase in progress, which may set the ground for the next upward movement in the crypto landscape.

Adding his thoughts, Galaxy CEO Mike Novogratz believes the recent downturn can be linked to long-term investors rebalancing their portfolios, which, while it might affect prices in the short term, could prove beneficial in the long run.