⚠️ Major risks & current caution points

1. Sharp pullbacks & volatility

The market saw a strong drop in October 2025: Bitcoin fell from above ~$125 k to around ~$100-105 k in a matter of days; many altcoins were hammered (some down 40-70%).

Derivatives liquidations were heavy: large amounts of leveraged long positions unwound.

2. Regulatory/ETF flows & sentiment risk

While inflows into crypto ETFs have been large, outflows have also been occurring when market sentiment shifts.

Sentiment is showing more “fear” than “euphoria” at this stage, which may limit short-term upside.

3. Macro headwinds

Further increases in interest rates, stronger dollar, or worsening macroeconomic data could limit crypto’s bullish case. As one strategist put it: assets like Bitcoin are “sensitive to funding and discount-rate regimes.”