Bitcoin Faces Structural Stress Amid Macro Pressures

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Bitcoin has recently endured a severe structural stress test, characterized by extreme market fear and significant ETF outflows. The asset has declined nearly 50% from its October 2025 peak, driven by a confluence of macroeconomic pressures, geopolitical tensions, and high leverage. This has pushed the Fear & Greed Index firmly into extreme fear territory, reflecting heightened investor anxiety and risk aversion.
While the current downturn presents substantial challenges, such stress tests historically reveal underlying market resilience and can create potential entry points for long-term investors. The combination of macro headwinds and leverage unwinding suggests continued volatility in the near term, but may also pave the way for a more sustainable foundation once excesses are cleared.
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