- Bitcoin drops to $112K as cycle exhaustion signs emerge.
- Institutional and retail profit-taking impacts BTC and related assets.
- Technical indicators suggest potential further price decline.
Bitcoin’s price has plummeted to $112K, triggering a wave of analysis among institutional and retail investors on September 22, 2025, amid signs of cycle exhaustion and profit-taking.
This event highlights the volatility inherent in cryptocurrency markets, with potential liquidity challenges and impacts on correlated assets like Ethereum, given emerging technical and on-chain signals.
Bitcoin shows signs of “cycle exhaustion,” dropping to $112K, influenced by negative technical and on-chain signals. Institutional profits and liquidity rotation are major contributing factors to this decline.
Major actors include institutional holders, whales, and large exchanges executing profit-taking strategies. Technical indicators observed closely by key influencers and analytics teams highlight signs of a bearish trend in Bitcoin’s value.
Immediate effects include heightened market risks for Bitcoin and major correlated assets. Institutional holders have begun profit-taking, prompting broader market volatility.
The financial implications see significant unrealized profit levels leading to increased distributions. Governmental and regulatory bodies appear unresponsive, with no new emergency statements following the price drop.
Historical trends show Q4 2021 to Q1 2022 saw similar patterns of high unrealized profits before sharp retracements. Discussions continue on potential liquidity gaps beneath $112K. Arthur Hayes, Co-Founder, BitMEX, stated that “Market participants are seeing signs of cycle exhaustion, and high net unrealized profits may lead to significant distribution among larger holders.” – source
Insights from analysts suggest potential financial consequences due to continued cycle exhaustion. If historical trends continue, additional price declines are possible, with market analysis focusing on potential regulatory and technological impacts.
