Although the price of Bitcoin has experienced a drop of more than 14% in the past week, closing at around $80,708, analysts generally believe that the current volatility is still a “macro correction” in the bull market cycle. Market sentiment was dampened by the fact that the executive order signed by the Trump administration on March 7 did not specify direct federal investment in Bitcoin, but industry experts stressed that the short-term correction in Bitcoin prices does not mean an early bear market, but may lay the foundation for a more solid rise.
According to Aurelie Barthere, chief analyst at blockchain data analysis platform Nansen, after the recent break of key support levels, the next target range for Bitcoin may be between $71,000 and $72,000. She pointed out that the current cryptocurrency and traditional markets are simultaneously entering the “macro correction” stage, and it is necessary to pay attention to factors such as the downward pressure on US technology stocks, fiscal policy uncertainty, and the lack of bottoming signals from the Federal Reserve. However, she reiterated: “This is still a correction in a bull market – stocks and crypto assets are digesting risks, and recession concerns have increased but have not overturned long-term trends.”
Other institutional analysts also believe that Bitcoin prices may fall further. Iliya Kalchev, an analyst at digital asset investment platform Nexo, said that if the price of Bitcoin falls back to the “low $70,000 range”, it will provide the market with a more sustainable basis for recovery. BitMEX co-founder Arthur Hayes stated on social media that the 36% pullback in Bitcoin prices from its historical high (a drop to $70,000) is a normal phenomenon in a bull market and investors need to remain patient. He predicts that as global central banks restart quantitative easing policies, Bitcoin prices will regain upward momentum.
Historical data supports this logic. After the Federal Reserve launched quantitative easing in March 2020, the price of Bitcoin soared from US$6,000 to US$69,000 in November 2021, an increase of more than 1,050%. Hayes emphasized that if the Federal Reserve, the European Central Bank and other institutions expand their balance sheets again, the price of Bitcoin may replicate this round of growth. The current market’s long-term expectations for Bitcoin prices remain optimistic, with many institutions predicting that the target price will reach more than US$160,000 to US$180,000 by the end of 2025.
Despite the increased short-term volatility, analysts generally believe that the pullback in Bitcoin prices is an inevitable process of market self-correction. With the shift in macro policies and the entry of institutional funds, the core driving force of this bull market has not changed, and the $70,000 mark may become the starting point of a new round of market conditions.
