With the start of the historically bullish month of October, expectations for a rally in Bitcoin (BTC) and altcoins have increased, while one analyst has warned of an 80 percent correction.
At this point, popular analyst Willy Woo warned investors that an 80 percent correction could occur.
Although the cryptocurrency market has remained bullish for much of 2025, signs of exhaustion are beginning to emerge, according to analyst Willy Woo.
In a recent YouTube video, Woo argued that with global liquidity shrinking, Bitcoin could face an 80 percent correction, mirroring past market trends.
Citing the decline in global liquidity as a key risk for Bitcoin and cryptocurrencies, Woo said that current market conditions now resemble previous late-cycle phases that led to major declines.
At this point, based on current conditions, Woo estimates that an 80 percent correction in Bitcoin price is more likely, which would be caused not by weak fundamentals but by diminishing global liquidity.
Woo acknowledged that the crypto sector is stronger today, with exchange reserves more transparent, regulators more active, and spot ETFs shifting liquidity to regulated markets and less leverage. However, he noted that a more robust market doesn't necessarily make cryptocurrencies immune to decline.
Bitcoin still remains dependent on global liquidity flows, and when these flows weaken, the strongest fundamentals are tested by declines, according to Woo.
“Liquidity acts as the oxygen of the market. When it expands, prices rise easily. When it contracts, the entire risk curve collapses.
In this context, Bitcoin, which is at the top, always gives the first and harshest reaction.
While traditional markets can fall by up to a third during recessions, Bitcoin and altcoins typically lose 70-80% of their value.
Liquidity injections from the Federal Reserve are also tapering off, diminishing the cash flow that once fueled the rally. Prices remain high, but the capital behind them is weakening.
Stronger catalysts can slow the decline, but cannot defy it.”
*This is not investment advice.