Bitcoin Plunges 50% from Peak: Mid-Cycle Correction or Bear Market Start?

Bitcoin has entered a significant correction phase after falling from its all-time high near $125,000 to the $60,000 region. This sharp reversal, which began with persistent selling pressure in October, has wiped out more than 50% of the cryptocurrency's peak value. Market sentiment has undergone a fundamental shift, moving from late-cycle optimism to a more defensive positioning among investors. Analysts are now debating whether this downturn represents a temporary mid-cycle pause or the onset of a multi-year bear market. The distribution phase following the record high has triggered widespread concern across institutional and retail sectors. As the BTC/USD pair stabilizes near the $60,000 mark, the direction of the next trend remains a critical focal point for global crypto traders.