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Bitcoin’s $100K Breakdown: Correction Phase or the Start of a Bear Market?


Disclaimer: This article is for informational purposes only and does not constitute financial advice. BitPinas has no commercial relationship with any mentioned entity unless otherwise stated.

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After a brief but symbolic dip below the six-figure threshold, Bitcoin once again tested the nerves of the market. The world’s leading cryptocurrency slipped under $100,000 before finding temporary stability in the $101,000–$102,000 range. 

This sharp move shook confidence and reignited an age-old debate: is Bitcoin merely undergoing a healthy cyclical correction after months of gains, or are we witnessing the first signs of a deeper, more structural downtrend?

This is a press release submitted to BitPinas.

Chart Confusion: Bitcoin’s Metrics Point in Opposite Directions

First, a barrier was broken. BTC broke below its 365-day moving average, an indicator used to assess the bottom line. This breakout has historically fueled a bearish bias. But the signal never stands alone. The market also reacts to the size of the drawdown and the overall cyclical context.

Thus, the current drop is more than 20% compared to the peak in early October, fueling the “bear market” rhetoric. Other voices, however, point out that we are still in what some call the fourth correction of a 2025 bull market.

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Indeed, previous drops of around 20% have sometimes given way to sharp rebounds within 60 days. The psychological threshold of $100,000 acts as a “line in the sand” here. If it holds, the scenario of a year-end rally re-emerges. Otherwise, a test lower might be necessary.

The weekly indicator is also significant. The 50-week exponential moving average is very close to $101,000. The medium-term trend is constant as long as the price stays within this range. In order to disprove the 365-day technical breakout, the market is currently waiting for a distinct rebound above $102,000 to $103,000.

The Great Reset: Liquidations, Flows, and Macro Crosscurrents

On the macro level, the message remains ambiguous. On the one hand, rising yields and risk aversion are weighing on the market. On the other, an argument is gaining ground: the mechanics of US public debt could force the central bank to discreetly inject liquidity through its repo facilities.

In short, if the monetary balance increases, dollar liquidity grows, and consequently, Bitcoin often benefits. This hypothesis of stealth quantitative easing fuels the optimism.

At the same time, the flow dynamics diverge depending on the actors. On one side, signs of capitulation from individuals appear, with morale at its lowest and forced exit positions.

Additionally, some experts point out that over the coming quarters, institutional investors and financial advisors will still be interested. A situation of paradox? Yes, but a classic one for pivotal phases: weak hands sell, patient hands position themselves.

The immediate catalyst was mechanical. A wave of sell-offs swept through the derivatives market, with over a billion long positions wiped out. The decline quickened like a chain reaction, momentarily falling below $100,000. An upward leg might replace the consolidation if buying starts up. Otherwise, the market will likely remain sideways while confidence is rebuilt.

Tactically, the market is eyeing an on-chain support zone between $98,000 and $100,000. BTC must restore its averages, provide assurance through trade flows, and demonstrate that the decline was only a correction in leverage. Additionally, macroeconomics will be crucial.

Bitcoin Hyper: The Layer-2 Revolution Giving BTC New Momentum

Strategy, Michael Saylor’s company, has already garnered attention in 2025 after outperforming Bitcoin’s own year-to-date gains by 17.22%.

However, one topic now dominates market discussion as the company continues to look for asymmetric growth prospects inside the Bitcoin ecosystem: will Strategy shift its focus to Bitcoin Hyper (HYPER), the fastest-growing Layer-2 solution built on Bitcoin?

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Bitcoin Hyper is a technological innovation that redefines the potential applications of Bitcoin. By merging the Solana Virtual Machine (SVM), renowned for its high-speed and low-cost execution, with Bitcoin’s settlement layer, the network delivers the best of both worlds: Solana’s performance with Bitcoin’s security.

This hybrid architecture opens the door to real-world functionality that Bitcoin has long struggled to achieve. Developers can now build decentralized finance (DeFi) protocols, Web3 gaming environments, and tokenized asset platforms that use BTC as native collateral, all while retaining the immutability and trust of Bitcoin’s main chain. 

In other words, Bitcoin Hyper isn’t just a scalability upgrade; it’s a paradigm shift that brings real utility to Bitcoin itself. The market appears to agree. Bitcoin Hyper’s presale has already surpassed $26 million, fueled by a wave of high-value whale purchases and growing institutional attention. 

With the token’s price soon to rise beyond $0.013225 per HYPER, the project is entering the final stage of its presale, marking one of the last entry points before its public exchange debut. If the current momentum holds, Bitcoin Hyper’s launch could rank among the most impactful Layer-2 rollouts in recent memory.

For investors and institutions alike, the narrative is simple yet powerful: Bitcoin is evolving again  and Bitcoin Hyper may be the catalyst for its next major growth cycle.

Beyond Bitcoin: Strategy’s Next Move May Be Layer-2 Expansion

According to an article published by Saylor on X, Strategy has now accumulated 641,205 BTC, representing a reserve worth approximately $64.8 billion at current prices.

Saylor noted in the same article that the company’s Bitcoin return for 2025 is 26.1%, which, at this rate, outperforms Bitcoin’s performance since the start of the year (8.8%). This difference underscores the effectiveness of its investment strategy.

Saylor, however, also revealed that Strategy recently acquired 397 BTC for $45.6 million, at an average price of $114,771 per unit, bringing its total holdings to a level exceeding that of all sovereign reserves.

Strategy’s accumulation of Bitcoin relies on a judicious combination of financing methods (convertible bonds, preferred shares and stock issues on the market), allowing the company to continue its purchases while preserving the flexibility of its balance sheet.

Thanks to these tools, Strategy continued to accumulate Bitcoin through market cycles, viewing it not as a speculative asset, but as a long-term cash reserve.

Now that Strategy’s performance is outperforming Bitcoin’s, the question is whether its next strategy should target an even higher alpha. The emergence of Bitcoin Hyper within the rapidly expanding Bitcoin Layer-2 ecosystem opens up new possibilities for BTC deployment and usage.

Acquiring HYPER tokens gives investors early exposure to the infrastructure that makes this development possible. This position might be reminiscent of the type of asymmetric returns that Bitcoin offered in its early days.

From Settlement to Speed: How HYPER Integrates with Bitcoin’s Core Layer

Each HYPER token is inextricably related to Bitcoin activity within the ecosystem due to their incorporation into the Bitcoin network. It is useful to look at the structure of the system in order to comprehend this relationship.

The Solana virtual machine (SVM) is used to generate applications at the top of the development layer. Bitcoin acts as a medium of trade between various applications, and this environment guarantees speed and cheap execution costs.

The Bitcoin network powers the development layer behind it, which completes and logs every transaction on the blockchain to guarantee security and immutability.

A canonical bridge, which locks Bitcoin to the base layer and creates an encapsulated version within Bitcoin Hyper, connects the two layers. This encapsulated BTC circulates freely between applications, paving the way for use cases previously impossible on the main Bitcoin blockchain.

The HYPER token works in conjunction with this system. It serves as a staking and governance token, protecting and overseeing the protocol, in addition to being used to cover the gas costs for Bitcoin transactions on the network.

Together, BTC and HYPER produce a two-token dynamic: when Bitcoin moves about, HYPER becomes more useful, and this connection increases demand beyond speculation. The value of HYPER might be significantly impacted even if just 1% of the Bitcoin supply were moved to the Bitcoin Hyper bridge.

Whales Move First: Big Money Bets on Bitcoin Hyper’s Future

While Strategy remains silent on whether it will engage directly with Bitcoin Hyper, major market players appear to be wasting no time. October saw a surge of whale activity around the HYPER presale, with the project attracting $5.8 million in new funding in just a few weeks. 

A significant share of that capital came from high-value purchases that signal growing confidence in Bitcoin Hyper’s long-term potential. One whale bought 24.6 million HYPER tokens for about $327,000, and two other whales bought 25.65 million tokens for about $333,000. These transactions stand out.

Notably, another investor made one of the biggest individual purchases to date, 62.2 million HYPER tokens, or over $833,000 at the time. And the accumulation hasn’t slowed: earlier this week, a new whale entered the market with a 10 million HYPER purchase worth $135,000, joining the growing list of large-scale backers.

Photo for the Article - Bitcoin’s $100K Breakdown: Correction Phase or the Start of a Bear Market?

These moves suggest that institutional and high-net-worth investors are positioning themselves early, well before HYPER’s public exchange debut. To them, Bitcoin Hyper represents more than just another Layer-2 experiment; it’s a calculated entry into Bitcoin’s next phase of utility and scalability. 

Whether or not Strategy decides to follow, the message from the market’s largest wallets is clear: the smart money is already circling Bitcoin’s Layer-2 frontier. The scale of this early whale activity underscores a broader conviction that Bitcoin’s hypergrowth era may have only just begun.

This press release is submitted to BitPinas: Bitcoin’s $100K Breakdown: Correction Phase or the Start of a Bear Market?

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