- Bitcoin’s recent price swings resemble the 2017 crash, with experts predicting a potential 25% drop to $60,750 before a rebound, fueled by institutional investments.
- Despite market volatility, historical trends suggest Bitcoin will recover as liquidity continues to drive asset prices upward.
Bitcoin’s price is once again on a wild ride, leaving investors wondering if history is about to repeat itself. March has seen drastic fluctuations, with BTC soaring to $86,000, dropping to $76,000, and then rebounding to $81,000. This volatility is making traders cautious, especially in light of the U.S. stock market’s recent 450-point plunge.
A Crash That Feels Like 2017
Bill Barhydt, CEO of crypto firm Abra, sees an uncanny resemblance between Bitcoin’s recent correction and the 2017 crash. Back then, Bitcoin lost 25% of its value before making a full recovery within a year. Barhydt suggests that history may be repeating itself, and a similar market cycle could be unfolding.
“Bitcoin is now experiencing its 11th 25%+ correction in ten years, and every time people react as if the sky is falling,” he noted. “This pullback looks, smells, and feels 100% just like 2017 to me.”
He explained that rising fiat liquidity has historically led to massive price surges in assets like stocks, Bitcoin, and real estate. As liquidity continues to flow, market corrections and rebounds are expected to follow the same cycle.
Could Bitcoin Drop to $60,750?
If Bitcoin follows past trends and experiences another 25% decline, it could drop to around $60,750. However, Bitcoin’s institutional backing is now stronger than ever. The emergence of Bitcoin ETFs has attracted trillions of dollars in institutional investments, providing a financial cushion that could accelerate a potential rebound.
Historically, Bitcoin has always managed to claw back after major corrections, and with institutional funds ready to buy the dip, another resurgence seems likely. While short-term volatility may be unsettling, long-term investors might see this as an opportunity rather than a warning sign.
Buckle Up for the Ride
Bitcoin’s market cycle appears to be playing out similarly to 2017, with corrections, rebounds, and eventual new highs. While uncertainty looms, past patterns suggest that Bitcoin could regain its footing within a year. Investors should brace themselves for a bumpy ride and keep an eye on the liquidity flow that could drive the next big move.
Whether this is a temporary dip or the start of a larger shift remains to be seen, but one thing is certain—Bitcoin’s rollercoaster ride is far from over.
