Unless unnerved by volatility, avoid locking in losses by exiting

Bitcoin, which touched a peak of $125,261 on October 6, 2025, is now trading at $91,691, down 26.8 per cent from its recent high. The correction has triggered nervousness among investors.

- KARTHIK JEROME

Correction follows steep rally

According to experts, the decline is a natural market correction after an overheated rally. “The dip could be a long-due correction after unchecked enthusiasm in recent months,” says Rajagopal Menon, vice-president, WazirX.

With macroeconomic uncertainty increasing in the US, global risk appetite has weakened. “Elevated US yields and inflation data surprising on the upside have played a part,” says Sumit Gupta, co-founder, CoinDCX.

He adds that exchange-traded fund (ETF) inflows have slowed after months of strong absorption, triggering profit-taking by short-term traders. ‘The unwinding of leveraged positions has also contributed to the selling pressure.

Fears of a possible burst of the artificial intelligence (AI) bubble have impacted tech stocks. “Due to their correlation with cryptos, this decline has spilled over into digital assets,” says Ashish Singhal, co-founder, CoinSwitch.

Near-term volatility expected