As the price of Bitcoin plummeted from $126,000 to $60,000, most markets naturally panicked, and with sentiment still in the red, the probability of the price falling is still high. For now, the focus is on predicting when Bitcoin will bottom. There are many factors that determine when prices bottom out over the years. However, considering the current situation, cryptocurrency analyst BarneyXBT outlined three different reasons arguing why Bitcoin could be at a bottom.
Why Bitcoin Price May Still Be in a Bear Market
In a post shared on The first reason to think Bitcoin is in a bear market is because large investors are still selling their coins. Recently, Satoshi-era whales have been seen selling, and Vitalik Buterin, the founder of Ethereum, is selling ETH.
The following list of reasons is indicative of the current macro climate. With the tariff war still largely unresolved, interest rates remaining the same and consumer confidence plummeting, analysts say the macro climate is “chaotic.”
The final reason is that retail appears to have completely disappeared from the market. This is evidenced by the lack of liquidity currently flowing into the market. Moreover, no new narrative has emerged like artificial intelligence (AI) in 2024.
Arguments for a bull market
On the other hand, the analyst also gives reasons to suggest that Bitcoin may still be in a bull market. One is that sentiment has plummeted to levels not seen since the FTX exchange crash. Now the reason this is important is because at this point sentiment had reached its lowest point and the market has since begun to recover.
Another reason is that institutions will not let their investments go to waste. Companies like BlackRock and Fidelity have poured billions of dollars into ETF products, and BarneyXBT explained that it’s highly unlikely they’ll spend this much on infrastructure just to get away.
Lastly, there is the legendary Bitcoin halving cycle. Looking at past performance, bull markets have always centered around the Bitcoin halving, which occurs once every four years. Therefore, there is a possibility that the BTC price will recover once another halving begins in 2028.
Featured image by Dall.E, chart by TradingView.com
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