Bitcoin Collapse Is a Good Thing? Why Fidelity Thinks That?

A crash sometimes isn’t a disaster, but it’s a much-needed belt-tightening. Sounds weird, right?

But Jurien Timmer, global macro director at Fidelity, threw down this hot take, the Bitcoin plunge, along with tumbles in meme stocks, SPACs, unprofitable tech firms, and fresh IPOs, is “probably a good thing.”

The air has suddenly been taken out of the speculative highfliers, such as the meme stocks, bitcoin sensitive stocks, SPACS, recent IPO’s, non-profitable tech, etc.  I would argue this is probably a good thing. pic.twitter.com/c7EBQDQKpr

— Jurrien Timmer (@TimmerFidelity) November 25, 2025

Bitcoin consolidation phase

Timmer’s reasoning is simple, a crash cleanses the market of its most reckless, irrational exuberance, paving the way for healthier, more sustainable investing.

Think of it as the market’s version of hitting the reset button mid-game.

Some crypto analysts paint this Bitcoin correction as a textbook 20-30% mid-bull cycle dip, more of a shakeout than a full-on crash.

Binance CEO Richard Teng calls it a “healthy consolidation phase,” mentioning that Bitcoin’s fall parallels wider bearish trends in speculative assets.

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If the Federal Reserve eases up

Arthur Hayes adds spice to the mix, suggesting that shedding excess leverage and a general “liquidity drawdown” might just prime the pump for a comeback.

The monetary environment, now tighter, could loosen again if the Federal Reserve eases up, and analysts say they will do that in December, sending Bitcoin to $200,000 to $250,000.

JPMorgan’s analysts pitch a slightly more conservative forecast of about $170,000 sometime in the next 6–12 months, comparing Bitcoin’s price dynamics to gold.

Momentum’s faded, though. Timmer remarked that Bitcoin now acts more like a risk amplifier than a safe haven.

But even with the price slide below $100k, the underlying Bitcoin network remains resilient, still playing its long game according to power law models.

Strategic trading

This moment of reckoning mirrors larger market dynamics. The general viewpoint is that speculative bubbles bursting isn’t always chaos.

We can think about it as it’s nature’s way of trimming the wild branches to let the forest breathe.

Investors are moving from fad-driven frenzy to strategic, experience-backed trading. The fireworks of excess blaze out, making room for a market grounded more in fundamentals than hype.

So now, the Bitcoin bloodbath challenges traders while hopefully setting the stage for fresh growth.

Like a phoenix from digital ashes, a revitalized crypto market awaits its next legendary rise. When moon?