"After more than a year since the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs, Bitcoin has officially entered a new cycle - one defined by structural maturity in its market, but also by the growing challenges that come with integration into the global financial system. The cryptocurrency reached a record high of around $126,000 in early October 2025 before undergoing a deep correction to levels near $100,000. Bitcoin's supply remains inherently limited. Following the April 2024 halving, the block reward was cut from 6.25 BTC to 3.125 BTC, effectively reducing the pace of new supply by almost half. Meanwhile, mining difficulty continues to rise, signalling a robust and increasingly secure network even as miner profitability declines."
"However, the fact that transaction fees represent only a small portion of total miner revenue has pushed many smaller operations into losses, prompting a wave of BTC sell-offs to maintain liquidity. While this process may strengthen the ecosystem's resilience in the long term, it also increases short-term selling pressure - making post-rally corrections inevitable after Bitcoin breaks through key psychological levels. In previous market cycles, Bitcoin was largely driven by retail investors and endogenous liquidity. Since 2024, however, the emergence of spot ETFs in the United States has ushered in a new era - one in which BTC has become an interest-rate-sensitive asset shaped by institutional capital flows. Following SEC approval, tens of billions of dollars flowed into funds such as iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC). Yet by Q4 2025, the picture had become more complex: ETFs were no longer merely "money magnets" but had turned into a real-time gauge of market sentiment."
Bitcoin has moved into a new cycle marked by greater structural maturity and integration with the global financial system. The asset reached about $126,000 in early October 2025 before correcting toward $100,000. The April 2024 halving reduced block rewards from 6.25 BTC to 3.125 BTC, reinforcing long-term scarcity while mining difficulty and network security rise. Diminished miner profitability and low fee revenue forced smaller miners to sell BTC for liquidity, increasing short-term selling pressure and post-rally corrections. The rise of U.S. spot ETFs transformed Bitcoin into an interest-rate-sensitive asset influenced by institutional capital flows and ETF-driven sentiment.
Read at London Business News | Londonlovesbusiness.com
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