**Bitcoin Falls Below $100,000: Experts Offer Optimistic Outlook Despite Market Turmoil**
Bitcoin’s recent dip below $100,000—its lowest level since June—has sparked concerns among crypto investors. However, two well-known market figures are urging caution before calling for a deeper collapse, offering reasons for optimism about where Bitcoin could be headed next.
**Retail Capitulation May Signal Market Bottom**
Bitwise Chief Investment Officer Matt Hougan believes the latest downturn is a sign of peak retail capitulation, rather than the start of a prolonged bear market. Speaking to CNBC’s Crypto World on Tuesday, Hougan said, “Crypto retail is in max desperation. We’ve seen leverage blowouts. The market for sort of crypto native retail is just more depressed than I’ve ever seen it.”
According to Hougan, there are growing indications that the sell-off is nearing exhaustion. “When I go out and speak to institutions or financial advisers, they’re still excited to allocate to an asset class that, if you pan back and look over the course of a year, is still delivering very strong returns,” he noted.
Hougan added that as soon as the retail flush-out ends, institutional demand could push prices higher. “I think Bitcoin could easily end the year at new all-time highs,” he said, citing a potential range of $125,000 to $130,000.
**Liquidity and Federal Policy as Future Catalysts**
Meanwhile, former BitMEX CEO Arthur Hayes pointed to structural liquidity as a key factor for the next Bitcoin rally. In a November 4th essay, Hayes argued that the US government’s growing reliance on debt issuance will ultimately force the Federal Reserve to expand its balance sheet—a process he referred to as “stealth QE.”
Hayes described this as the Fed supplying cash to the financial system through its Standing Repo Facility in order to support government financing needs. Quantitative easing (QE) is a monetary policy where central banks purchase financial assets, such as government bonds, to increase the money supply and stimulate the economy.
“If the Fed’s balance sheet grows, that is dollar liquidity positive, and ultimately pumps the price of Bitcoin and other cryptos,” Hayes wrote. He believes this ongoing cycle of rising government borrowing and quiet liquidity creation will “reignite the Bitcoin bull market.”
**Bear Market Confirmed, but Opportunity Remains**
On Tuesday, Mosaic Asset and trading resource The Kobeissi Letter posted on X (formerly Twitter) that Bitcoin (BTC) has officially entered bear market territory after falling more than 20% from its record high on October 6. Other traders warn that prices could extend losses further, with investor Ted Pillows describing the market as being in “free fall” and predicting a potential retest of the $92,000 CME gap if the $100,000 support fails to hold.
While short-term volatility remains high and bearish sentiment persists, leading voices in the crypto world stress that current market conditions could be setting the stage for the next major rally—especially if retail traders capitulate and institutional demand picks up, and as macroeconomic factors potentially drive new liquidity into the system.
https://cointelegraph.com/news/bitcoin-below-100k-analysts-bullish-outlook
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