XRP Lawyer John Deaton Says Bitcoin Could Still Rally To $110K Before Year End

Bitcoin sentiment has collapsed to historic lows as fear spreads across the market. This has prompted a new discussion between Anthony Pompliano and XRP lawyer John Deaton. In addition, CryptoQuant analyst Maartunn observed that Bitcoin has gone back to a price range that usually defines a significant direction in the market.

Deaton Predicts Bitcoin to $110,000 Before 2025 Ends

John Deaton has said that he would not be surprised if Bitcoin dipped under $75,000 before recovering. He has emphasized that it is not a prediction, but a rational direction, following past cycles.

Deaton added that Bitcoin may climb to a high of $110,000 before the year ends in case confidence is restored in markets and there is a reduction in selling pressure. Institutional conviction has not significantly decrease even during this peak fear levels. This is evident in a recent confirmation by Metaplanet to purchase additional Bitcoin.

Recent reading of Fear and Greed Index declined to single digits, which is the lowest point in the history of Bitcoin. According to Pompliano, this drop puts sentiment below the panic phases that was observed during the 2020 COVID crash and the 2022 FTX collapse. He also said this is an indication of huge stress in the market.

On-Chain Metrics Reveal Peak Short-Term Holder Losses

Recent on-chain information has confirmed that short-term holders are experiencing their largest unrealized losses in history. During the COVID period, 92% of short-term coins were negative. In addition, when FTX collapsed, this level increased to 94%. As of today, the number of short-term investors with unrealized net losses is at 99%. This represents the worst capitulation of all time in Bitcoin.

This trend is confirmed by a Glassnode chart posted by analyst Chris Beamish. The chart indicates that net unrealized profit and loss on short term holders is deeply negative.

BitMEX co-founder Arthur Hayes recently argued that Bitcoin’s crash is approaching its final phase. He noted that several on-chain bottom indicators are now flashing.

Beamish said short-term holders are “seriously feeling the pain” as their profitability collapses to cycle lows. The chart visually captures how quickly short-term confidence has evaporated, with readings falling back to levels associated with prior major market bottoms.

Maartunn also noticed that Bitcoin has already fallen back to the level of average entries for its Spot ETFs. In his viewpoint, it is this level which serves as a prime price magnet and usually determines the next significant direction of the coin.

Institutional Selling Surges While Signs of Stabilization Appear

The pressure is also being intensified by heavy institutional selling. In a video on X, Pompliano referenced comments from Charles Edwards, founder of the crypto-focused fund Capriole Investments.

According to Edwards, institutional sellers reached the highest percentage of Coinbase volume in the exchange’s entire history. He said the selling seen yesterday exceeded every other capitulation event on record. A veteran trader Peter Brandt warned that Bitcoin would drop towards the $58,000 range as selling gains momentum.

This adds to the anxieties of a more serious correction. Pompliano said that the last 45 days would have been a nightmare for those who purchased BTC at a price close to its recent highs.

Yet, some analysts see some premises of a possible stabilization. As mentioned by Edward Mora, the largest one-hour trading volume at Binance had been recorded since the significant liquidation that occurred in October.

He said this is the type of activity often seen near market bottoms, when aggressive buyers begin absorbing forced selling. Pompliano agreed, saying strong buying pressure is essential for any sustained recovery.