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The post Two Key Reasons Bitcoin Enters Bear Markets: Wall Street Veteran appeared com. According to Wall Street veteran and mathematician Fred Krueger, Bitcoin bear markets happen for exactly two reasons: first, when global liquidity turns negative, in the case of Fed tightening; second, forced selling from a Bitcoin-specific shock (in the instances of Mt. Gox, miners or fraud). Krueger backs up his assertion with figures, adding that everything else remains noise. Traders define a “bear market” to refer to a price drop of 20% or more for an asset; as such, prices are low and projected to continue dropping for an extended period. Bitcoin bear markets happen for exactly two reasons: 1. Global liquidity turns negative (Fed / dollar tightening)2. Forced selling from a Bitcoin-specific shock (Mt. Gox, miners, fraud) Everything else is noise. Let’s examine the data, shall we? 1/ Fred Krueger (@dotkrueger) December 17, 2025 Krueger outlines a number of instances when Bitcoin entered bear markets, and the triggers behind it. In 2011, when BTC fell from $32 to $2, a 93% drop coincided with the end of quantitative easing alongside dollar tightening. The stock market also entered a stealth bear zone in this period. From 2013 to 2015, when Bitcoin fell from nearly $1,100 to $200, marking an 85% drop, this period coincided with the collapse of Mt. Gox and massive forced selling. From 2017 to 2018, when the Bitcoin price fell from $20, 000 to $3000, an 84% drop, this period coincided with the start of Fed rate hikes alongside quantitative tightening. The global dollar liquidity also peaked, while ICO leverage saw a violent unwind. In March 2020, when Bitcoin fell from $9,000 to $3,800, dropping about 60% in a matter of days, this period saw global margin calls as well as dollar shortage. Between 2021 and 2022, when Bitcoin fell from about $69,000 to $15,500, a 77% drop. Continue reading Two Key Reasons Bitcoin Enters Bear Markets: Wall Street Veteran→