Bitwise Asset Management's European head, Bradley Duke, talked with Proactive about the recent decline in Bitcoin's price and what it could mean for investors.
Duke noted that while some view the fall from over $110,000 to $87,000 in November as a "disaster," others see it as a chance to accumulate at discounted levels. “It really is a sort of a Black Friday discount price for people who want to get involved,” he said.
He explained that the downturn was triggered by a tweet from former President Donald Trump announcing a sharp tariff hike on China. Since crypto markets trade around the clock, Bitcoin bore the immediate brunt of the selloff while traditional markets were closed. This sparked a wave of profit-taking by long-term holders and panic selling by short-term investors, further accelerating the price decline.
Despite this, Duke said institutional demand remains evident. Flows into Bitcoin ETPs continue, although somewhat tempered, and some large holders—or "whales"—have been buying the dip. The company has also engaged with investors who previously felt they had missed the opportunity to enter the market and now see more attractive entry points.
Looking ahead, Duke pointed to seasonal patterns that could support Bitcoin in December. He noted historical spikes in Bitcoin ETP flows towards year-end, particularly from both European and U.S. investors, which could help lift the price as the year closes.
Proactive: Bradley, very good to speak with you. November has been a bit of a disaster for Bitcoin — currently around $87,000, after starting the month at around $110,000. What's happened? What's caused this?
Bradley Duke: Right, well yes, it's a disaster for some. It's also a buying opportunity for others. It really depends on your time horizons — are you a long-term holder or a short-term speculator? That plays into the whole narrative of what's been going on.
What initiated the selloff was on the 10th of October, President Trump tweeted — quite late on a Friday — about imposing 100% tariffs on China, an escalation in the trade war. Bitcoin and cryptocurrencies trade 24/7, so they were able to take the brunt of the selloff.
Bitcoin had been trading near all-time highs — around $124,000 to $126,000 — and there was optimism about it moving higher. But this triggered a reversal. Long-term holders began to take profits. Then short-term holders started panic selling, which exacerbated the downward trend. It dropped to the lower $80,000s before recovering to around $87,000–$88,000.
Proactive: Bradley, any idea of who might be stepping up and starting to buy Bitcoin? We've spoken previously about institutional buying supporting the markets. Are you seeing buyers coming in at this level?
Bradley Duke: Yes. We've seen some interesting data. Global Bitcoin ETP flows have continued to grow — they've tapered off recently, but they're still a major buying force. Bitcoin treasury companies were another source, though their buying has also slowed recently.
We're also seeing some "whales" — those holding more than 1,000 bitcoin — buying into this dip. And we've spoken with investors who previously felt they missed the boat. With Bitcoin over $100,000, they wished they'd invested earlier. Now, they’re seeing this as a great buying opportunity.
Bitcoin trading in the $80,000s is 20–30% cheaper than a month ago. So, for many, this is a Black Friday-style discount, a chance to dollar-cost average and accumulate more.
It really depends on whether you're a long-term believer or a short-term speculator — that's how investor groups are primarily divided.
Proactive: We had some pretty lofty expectations for Bitcoin by year-end, particularly from the likes of Cathie Wood from Ark Invest. Do you see it stabilising as we head towards the end of the year?
Bradley Duke: Yes, that’s an interesting point. Of course, no one can predict the future, but we can look at historical performance.
There is a cumulative seasonality to Bitcoin ETP flows — they typically spike towards the end of the year, especially in December. So I’m expecting some upward movement in price in December due to this historical trend of accumulation via ETPs, both in Europe and the U.S.