Why Bitcoin's correction was inevitable
Date: 2025-11-20 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
According to Noelle Acheson, Bitcoin's recent decline reflects a general shift in sentiment among macroeconomic-focused investors. She emphasizes that, thanks to its high liquidity and round-the-clock trading, Bitcoin has long since become a universal risk indicator that reacts faster than most other assets. Unlike traditional instruments, Bitcoin is not dependent on corporate earnings or surges in interest in artificial intelligence, making it particularly sensitive to global trends.
Acheson notes that the sharp decline in the price should not be perceived solely as a negative signal. On the contrary, she considers it a necessary phase for market recovery. According to her, excessive confidence and a desire to ignore new economic conditions have led to the accumulation of excessive leverage among many traders, especially after the halving in April 2024. The correction, while painful for those who played aggressively, serves as a kind of "airing out" function, displacing the most vulnerable participants and clearing the market structure.
Acheson finds it interesting that the decline in Bitcoin's dominance coincided with a weakening of Ethereum's position. Such synchronicity has rarely been observed before. This suggests that investors are not redistributing funds within the crypto market, as was previously the case, but are opting to withdraw entirely into cash. Moreover, the freed-up liquidity is not being channeled into stocks or bonds, underscoring investors' general wariness of potential economic shocks.
Despite the current uncertainty, Acheson remains optimistic about the crypto market's long-term outlook. She notes that most institutional investors have not yet built significant positions in digital assets, creating significant potential for future capital inflows. As the macroeconomic situation stabilizes, institutional funds could become key drivers of the next growth cycle.
Experts say the standoff between the US Treasury and the Federal Reserve, previously discussed by Raoul Pal, CEO of the Real Vision platform, is also creating additional pressure on the market. Their struggle for control of liquidity has heightened fears of a recession and made cryptoasset dynamics even more volatile. This uncertainty is making investors more cautious, which is exacerbating the current outflow of funds.
Therefore, Bitcoin's latest decline was not simply a reaction to local news, but a reflection of complex processes occurring in the global economy. According to Acheson, the correction could lay the foundation for more sustainable growth in the future if the market manages to adapt to the new financial reality.
