Bitcoin (BTC), the leading cryptocurrency, has made headlines this week by consistently breaking all-time highs, recently surpassing the $126,000 mark for the first time.
However, the current price action has not only drawn attention from investors but also reignited discussions surrounding a notable prediction made two years ago. An anonymous user had forecasted that Bitcoin would achieve a peak on October 6, 2025—a prediction that came to fruition just yesterday.
This rapid price fluctuation has led many to speculate that the recent peak could potentially mark the cycle’s all-time high, suggesting that Bitcoin might soon enter a new bear market phase.
Market analyst Doctor Profit has recently cautioned that despite the current bullish trend, the market is entering a precarious phase. He noted that while there is a prevailing sense of euphoria, underlying financial indicators are signaling a potential liquidity crisis.
This decline raises concerns about the stability of interbank liquidity, suggesting that the financial system may soon face significant dislocations if the RRP continues to dry up. Historical parallels from 2018, 2019, and 2023 indicate that such liquidity issues often precede major market corrections.
Moreover, US banks are reportedly grappling with approximately $395 billion in unrealized losses as of the second quarter of the year, putting additional pressure on their balance sheets.
In the crypto space, recent trends reveal substantial inflows into exchange-traded funds (ETFs), with firms like BlackRock contributing over $1 billion in Bitcoin and $200 million in Ethereum just last week.
The expert believes that this alleged market manipulation often signals a market cycle peak, creating what he believes “a highly toxic mix” that could have adverse implications for future price movements.
In conclusion, Doctor Profit notes that the overall sentiment paints a bearish picture at a macro level. Both the crypto and stock markets are seen as being at an increased risk of entering a bear market after the fourth quarter.
Featured image from DALL-E, chart from TradingView.com
