Bitcoin’s price has been taking back-to-back hits since the last few weeks as it dropped from $105,000 from Feb 1 to now trading for $87,037. This drop is causing a lot of fear in the market at the moment as traders can’t get assurance that it’s finally a Bitcoin bottom.
Many investors are selling their Bitcoin at a loss, with short-term holders offloading 43,600 BTC ($3.9 billion), which is the highest amount since August last year, according to Glassnode.
The total losses from these sales amounted to a staggering $1.8 billion, which is the largest one-day loss in months. However, some experts feel that Bitcoin is reaching its lowest point before a possible rebound. Is this finally Bitcoin bottom, or will we see more drops? Let’s see what experts have to say
Andre Dragosch, Head of Research at Bitwise Europe, said that the Crypto Asset Sentiment Index is at its lowest point since August 2024
“The Crypto Asset Sentiment Index just flashed a massive contrarian buy signal for Bitcoin,” Dragosch said. “Widespread bearishness across flows, on-chain data, and derivatives suggests that downside risks are fairly limited.”
Meanwhile, the total value of the crypto market has now dropped to $2.9 trillion, which is $1 trillion lower than its December 2024 peak, according to data from CoinMarketCap.
But there are lots of events that led to this crash. One was the $1.4 billion hack on Dubai-based exchange Bybit, which raised concerns about security in the market. Because of this, many traders seem to have pulled out their funds from exchanges.
On top of that, Donald Trump’s proposed tariffs on Canada and Mexico unleashed uncertainty into the market. Many also fear that Federal Reserve policies could put more pressure on the crypto market in the coming months.
But even with all this fear and panic, some experts are still positive about Bitcoin’s future. Investment firm Bernstein believes Bitcoin will hit $200,000 within the next year. “We view the current correction as another opportunity to participate in this cycle,” analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia wrote in a report. They believe Bitcoin’s rise might be delayed, but they still expect strong growth in the long run.
Geoffrey Kendrick from Standard Chartered thinks Bitcoin could drop to the low $80,000s before bouncing back. He also pointed out that Bitcoin ETFs need to see $1 billion in outflows before confirming a real bottom. Meanwhile, data from basedmoney.io shows that many traders are still betting on Bitcoin reaching $120,000 by March 28.
Moreover, Bitcoin has a history of bouncing back after big drops. But right now, the market is still uncertain. Some traders believe the worst is over, while others are waiting for more stability.
Also Read: Binance’s CZ Predicts Bitcoin Crash From $1M to $985K
