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      Bitcoin Bear Market Shows Signs of Milder Impact Amid Institutional Support

      Bitcoin's current bear market, which has seen a price drawdown of approximately 50% from its peak near $126,000 in October 2025, is being characterized as relatively mild compared to previous downturns in the cryptocurrency's history. In contrast to the severe declines of 78% in 2022 and 84% in 2018, the current market correction is viewed as a manageable adjustment for long-term holders.

      Institutional investment appears to be a significant factor in this cycle. Since the launch of spot Bitcoin exchange-traded funds (ETFs) in early 2024, these funds have attracted around $60 billion in net inflows through October 2025, with less than $10 billion withdrawn during the recent price drop. A report from Bitwise in September 2026 revealed that none of the 15 major institutions surveyed reduced their crypto allocations during the downturn, with some even increasing their Bitcoin holdings, indicating a strong belief in Bitcoin as a digital store of value alongside traditional assets like gold.

      Additionally, Bitcoin's implied volatility has decreased from around 70% to approximately 45% in 2025, suggesting a stabilization in market expectations. Long-term holders are maintaining net unrealized profits, viewing current price levels as a temporary phase rather than a capitulation point, which contrasts with previous bear markets where holders typically faced significant losses before a bottom was reached. This shift in market dynamics is contributing to a shorter and less severe bear market cycle, with the current downturn lasting about 8 to 9 months as of mid-2026, compared to the historical average of 12 to 13 months.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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