Bitcoin Drops Below $108,000, Sparking Bearish Concerns

Bitcoin's price fell below the critical $108,000 threshold on July 5, 2025, intensifying market speculation and raising concerns about potential extended bearish trends. This price dip underscores the potential market volatility, sparking concern among traders and analysts worldwide.

Analysts emphasize the significance of the $108,000 mark as a pivotal point for future Bitcoin trends. According to Daan Crypto Trades, a break below this level could threaten the current bullish outlook. Markus Thielen from 10x Research discussed several market influences, including strong inflows into spot Bitcoin ETFs, uncertainty around the US Federal Reserve, and the rapid decline of Bitcoin supply on crypto exchanges, which are currently supporting the bullish case. However, Thielen cautions that a break below $108,000 would jeopardize this outlook.

The decline in Bitcoin's price places $2.7 billion in long positions at risk of liquidation, adding pressure on market participants. Daan Crypto Trades warns that further drops could lead to a bearish downtrend. If Bitcoin falls back toward $108,000, it could trigger a bearish downtrend, potentially pushing the price below $100,000 and possibly down as far as $96,000. While Bitcoin is directly affected, ETH and major altcoins show no significant contagion effects. Analysts anticipate continued strong demand fueled by institutional interest.

Traders are adjusting their positions in response to the volatility, with some preparing for potential further price shifts. Spot ETF inflows and on-chain analysis indicate strong demand, hinting at resilience despite current price movements. Looking forward, the potential financial impacts hinge on whether Bitcoin can recover or move further into bear market territory. Analysts highlight historical price movements and spot market dynamics as vital influences on the future trajectory of Bitcoin's price.