Here’s When Bitcoin Will Bottom and What’s Next: Industry Experts Weigh In
Bitcoin has corrected 29% from its all-time high of $108,786 on January 20, reaching a low of $76,784 during early trading in Asia on March 11, 2025. This recent downturn has triggered panic selling among crypto investors and traders, echoing similar trends seen in previous bull market cycles. Historical data shows that in past cycles, Bitcoin’s average corrections were approximately 35% in 2017 and 37% in 2021. Given this pattern, analysts suggest that if Bitcoin follows suit, prices could potentially drop to around $70,000.
In the context of this volatility, Arthur Hayes, co-founder of BitMEX, has urged investors to be patient. He highlighted that large hedge funds have begun to unwind their ETF positions, leading to increased market pressures. Hayes has reiterated his prediction that Bitcoin may bottom out around the $70,000 mark, signifying a typical correction for a bull market. He emphasized that a 36% drop from an all-time high is not uncommon, advising investors that central banks’ forthcoming adjustments to monetary policies could lead to a market rebound.
Supporting this sentiment, Charles Edwards, founder of Capriole Fund, noted that as bearish sentiments increase, the market may be primed for future bullish recovery, stating, “The worse the economic data becomes, the more relatively discounted Bitcoin tends to get.” He recommended that investors wait for a clear technical recovery or policy change instead of trying to make hasty investments amid falling prices.
The current market turmoil has been exacerbated by recession fears, which have led to significant sell-offs in both tech stocks and cryptocurrencies. On a single day, major indexes like the S&P 500, Nasdaq, and Dow Jones Industrial Average witnessed severe declines, with the American “magnificent 7” tech giants collectively shedding over $750 billion in market capitalization.
Major financial institutions, such as JPMorgan, have increased their predictions of a recession occurring in 2025 while scaling back GDP growth expectations. Cathie Wood of Ark Invest pointed out that the market may be discounting the final leg of a rolling recession. She indicated that this situation could provide the Trump administration and the Federal Reserve with significant flexibility, hinting at a potential recovery in the latter half of 2025.
As the market continues to grapple with uncertainty, many investors are watching closely for signs of stabilization and recovery, all while the underlying volatility of cryptocurrencies like Bitcoin remains a focal point.
