Foresight News reports that Willy Woo tweeted that dividing the Bitcoin bear market into three stages is very helpful for judging the cycle. The first stage—the beginning of the bear market—occurs when Bitcoin’s liquidity has already collapsed (this happens in Q3 2025), and the price begins to decline. Bitcoin is a relatively small asset, so it is highly sensitive to liquidity. For this reason, it often leads the global macroeconomy into a bear market, usually by several months. In other words, when smart money withdraws, Bitcoin reacts quickly. Smart money may also withdraw from the stock market, but the stock market does not respond rapidly. In this stage, long-term ultra-bullish investors blindly claim that this is just a correction within a larger bull market, but they cannot provide strong evidence of capital inflows and only talk empty words.
The second stage—global stock markets enter a bear market. Since the stock market is a massive market worth up to $100 trillion, it is like a giant supertanker, slow to move. This is the mid-stage of Bitcoin’s bear market, during which all risk assets are declining, and it is unquestionable that we are in a bear market. The third stage—the dawn at the end of the tunnel. In this stage, liquidity begins to improve, capital outflows peak and start to stabilize. Investors are returning. This stage usually features the last price plunge (capitulation sell-off), which occurs either before the peak of capital outflows or slightly after. According to this bear market framework, Bitcoin is currently in the first stage and approaching the second stage.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Opinion: Cryptocurrencies unfortunately have become the preferred short hedge tool during weekend risk-off events.
BlockBeats News, February 28 — DeFiance Capital founder Arthur stated, "Unfortunately, cryptocurrencies have become the preferred short hedge tool during weekend risk-off events."
GateNews42m ago
Korea University Launches Enterprise Validator on Injective With 369K INJ Staked
Korea University launched an Injective validator with 369,809 INJ staked, adding an institutional node to the network’s validator set.
INJ technical levels in focus were supported at $3.03 and $2.90, while resistance was clustered between $3.39 and $3.60.
Korea University has launched an
CryptoNewsFlash1h ago
Crypto Market Prices Fall as War Tensions Escalate, Trump Confirms US Combat Operations in Iran
Crypto market prices fall as war tensions escalate.
Trump confirms US combat operation in Iran.
Can crypto prices recover if geopolitical tensions simmer?
The crypto market saw a fall in total market cap by over 6% in the last 24-hours and experts believe a larger dip in prices is
CryptoNewsLand1h ago
Iran is hit by US and Israel airstrikes! Bitcoin drops sharply, approaching $63,000
After the United States and Israel conducted airstrikes on Iran, Bitcoin dropped about 3% within a few hours, approaching $63,000, the lowest since February. This event marks an escalation in tensions between the US and Iran, and Bitcoin, as a liquidity asset traded around the clock, has become an immediate reflection of geopolitical concerns. If the conflict intensifies, it could impact global energy prices and supply chains, further affecting the performance of risk assets.
MarketWhisper2h ago
Wall Street Begins Buying Altcoins
Recently, major asset management firms have started investing in DeFi Tokens, including BlackRock and Apollo Global Management, indicating a renewed interest in altcoins. Institutional participation could create positive feedback for the industry and boost retail investor confidence. However, the bear market is not over yet, and it is expected that altcoins will need to wait a longer time before seeing gains. The author plans to increase holdings of altcoins starting next quarter and will focus on projects with low price-to-earnings ratios and genuine product value.
TechubNews2h ago
PiDay 2026 Incoming – Why This Guy Thinks PI Is About to Moon
Price speculation around Pi Network continues to grow as traders position early for a potential surge. Community discussions reflect rising confidence, and recent posts highlight broader market expectations. Many participants believe an upcoming catalyst could trigger stronger momentum, which
Coinfomania2h ago
