Analysis: Three Structural Factors Amplify This Bitcoin Downturn

Odaily According to analysis, Bitcoin recently experienced a sharp sell-off, retreating more than 50% from its all-time high of around $126,200 in October 2025. Three structural factors are believed to have amplified this downturn:

1. Some views suggest Asian capital may have been the trigger for this sell-off. By borrowing low-cost Japanese yen and establishing highly leveraged long positions through Bitcoin ETF-related options and crypto assets, when Bitcoin stopped rising and funding costs increased, it triggered margin calls and forced selling, exacerbating the market decline.

2. Some banks may have been forced to sell assets due to risk hedging for Bitcoin structured products, creating a "negative Gamma" effect that amplified the downward momentum.

3. Some mining companies are shifting to AI data center businesses while selling Bitcoin assets, indicating a structural change in the Bitcoin mining industry. (Cointelegraph)