Is the Bitcoin bull market over? Four experts on what’s driving crypto’s choppy ride

1 week ago 4

Bitcoin is down 13% since peaking astatine $108,000 2 weeks ago.
Crypto speech measurement has plunged to a seven-week low.
Analysts identified important factors driving the crypto market.

When Bitcoin leapt past $100,000 successful December, analysts predicted overmuch higher milestones to come.

Instead, Bitcoin has skidded 13% from its highest of $108,135 2 weeks ago.

Sobered analysts present accidental marketplace sentiment has go muted arsenic crypto trading measurement has slumped 64% to a seven-week low.

This doesn’t mean the bull marketplace is over.

No exception

“The existent debased measurement and erratic terms enactment is not atypical of twelvemonth ends crossed plus classes, crypto is nary exception,” Ed Hindi, main concern serviceman astatine concern manager Tyr Capital, told DL News.

“This is simply a short-term correction that should beryllium rapidly reversed successful the archetypal 4th of 2025,” Hindi said.

Not everyone agrees with that position.

BitMEX laminitis Arthur Hayes has flipped bearish erstwhile again.

In his latest macroeconomic forecast, Hayes said determination is simply a misalignment betwixt crypto capitalist expectations and what’s to travel successful President-elect Donald Trump’s 2nd word successful the White House.

“The marketplace volition instantly aftermath up to the world that Trump has astatine champion 1 twelvemonth to enact immoderate argumentation alteration connected oregon astir January 20th,” Hayes wrote successful his blog.

“This realisation volition pb to a vicious sell-off successful crypto and different Trump 2.0 equity trades.”

‘This caller dip serves arsenic a steadfast continuation of Bitcoin’s broader rally.’

— Illia Otychenko, CEX.io

Then again, Illia Otychenko, pb expert astatine crypto speech CEX.io told DL News that the existent dip is emblematic for Bitcoin.

“This caller dip serves arsenic a steadfast continuation of Bitcoin’s broader rally,” Otychenko said.

“The sustainability of the rally would beryllium much questionable without specified a correction [and] double-digit dips are earthy during Bitcoin’s post-halving bull runs.”

Hawkish pivot

Shortly aft Bitcoin peaked supra $108,000, the US Federal Reserve Chair Jerome Powell spooked investors by saying the Fed was mulling less involvement complaint cuts adjacent year.

Otychenko said the Fed’s updated complaint chopped projection provided a trigger for the crypto marketplace correction.

“[It] near a bitter aftertaste for the twelvemonth and provided the long-awaited catalyst for a marketplace pullback,” Otychenko told DL News.

The marketplace reacted by erasing astir of its December gains and has been volatile ever since.

Hindi said the Fed’s evident hawkish pivot slowed the upside momentum for risk-on assets specified arsenic Bitcoin and different cryptocurrencies.

“Long-term Bitcoin holders utilized that arsenic an excuse to instrumentality partial profits,” Hindi said.

The Fed chair’s code whitethorn not beryllium the lone driver.

Market analysts besides cited taxation nonaccomplishment harvesting arsenic a crushed for the caller marketplace slide.

Investors usage taxation nonaccomplishment harvesting arsenic a harmless harbour program by utilizing immense concern losses to offset superior gains taxes.

2025 bull market

Despite these hazard factors, marketplace observers inactive stake connected the continuation of the bull marketplace for Bitcoin and cryptocurrencies.

On-chain information from crypto analytics supplier CryptoQuants shows a monolithic summation successful Bitcoin accumulation by whales ― wallet entities that ain astatine slightest 1,000 Bitcoin.

What’s much CryptoQuant analysts besides enactment Bitcoin inflows to exchanges person dropped to their lowest level since 2016.

Meanwhile, stablecoin measurement connected Binance, crypto’s biggest exchange’ has risen to a caller all-time precocious of $31 billion.

“An summation successful stablecoin reserve typically signals that buying unit is increasing [and] that investors stay actively positioned successful the market,” CryptoQuant analysts said.