Analysis: Bitcoin's current round of decline is "different from the past," not accompanied by a major crisis but with continuous fund outflows

BlockBeats News, December 17th, according to Bloomberg, Bitcoin is heading towards its fourth annual decline in history, also the first time a retracement has occurred without a major scandal or industry-wide meltdown. Analysis indicates that this downturn is happening as institutional participation expands, the regulatory environment matures, and the crypto industry receives public support from U.S. President Trump, surprising the market.

Since setting a historical high above $126,000 in early October, Bitcoin has swiftly retraced, currently experiencing low trading volumes as investors continue to withdraw from related products. Data shows that since October 10th, listed Bitcoin spot ETFs in the U.S. have seen over $5.2 billion in net outflows, market depth has decreased by around 30% from the yearly peak, and there is a significant lack of appetite for a rebound in the derivatives market.

Unlike previous bear markets, this round of retracement was not triggered by exchange collapses, heavy-handed regulations, or systemic risk events. The previous three annual plunges occurred due to the collapse of Mt. Gox (2014), the bursting of the ICO bubble (2018), and an industry crisis sparked by the FTX incident (2022).

Analysts point out that in this recent downturn, Bitcoin is showing signs of "decoupling" from the U.S. stock market. The S&P 500 index has repeatedly hit new highs this year, with an annual gain of around 16%, especially strong performance in tech stocks, while Bitcoin continues to be under pressure. Apollo Crypto stated that despite numerous positive factors, the price lacks sustained follow-through, indicating a clear weakening of market sentiment. Overall, this Bitcoin adjustment appears more like a fund reallocation and a decline in risk appetite in a high-level context, rather than a panic-induced collapse triggered by a single event.