Bet On Crypto

Bitcoin Is Likely To Go Far Lower, Although Bull Signs Are Appearing.

Bitcoin's price has fallen over 20% from its record high of $109,000 just five weeks ago. On Tuesday, it hit a low of $87,000. Some Bitcoin supporters blame this drop on the broader crypto market, especially meme coins.

The excitement around meme coins peaked when people launched TRUMP and MELANIA tokens linked to the former U.S. president and first lady. At first, the tokens skyrocketed in value, but soon after, they crashed, leaving many investors with huge losses.

Meanwhile, Solana (SOL), the blockchain where many meme coins were created, has dropped more than 50% since that wild weekend in January. Other major cryptocurrencies have also followed this downward trend.

Table of content

A Hack Shakes the Market

Bitcoin has been holding steady for a while, and just a few days ago, it might have climbed back up to $100,000. But then something big happened—a hack on Bybit, a popular crypto exchange.

Even though the attack had nothing to do with Bitcoin, the event caused panic across the crypto market. Ethereum (ETH) was hit especially hard, dropping 15%. As fear spread, Bitcoin also took a hit.

Experts See More Declines Before Recovery

Some Bitcoin investors believe the price will eventually go much higher. One trader, StackHodler, reminded people that no one knows where Bitcoin’s price will go next. He pointed out that Bitcoin has already fallen below $92,000 and may drop to around $82,000 before bouncing back.

Another expert, Geoff Kendrick from Standard Chartered, warned that the drop isn’t over yet. He thinks Bitcoin could fall to the low $ 80,000 before it becomes a good buy again. He’s also watching for a significant outflow of money from Bitcoin ETFs, which could signal a bottom in the price.

Signs of the Next Bull Run?

Bitcoin isn’t the only thing struggling. U.S. stocks have also had a rough time, with the S&P 500 suffering its worst week since Trump’s inauguration. The Nasdaq (which includes big tech companies) peaked in December and is now 5% lower than that high.

There are many reasons people believe markets are slowing down. Some blame new tariffs, others think Elon Musk’s cost-cutting government is a factor, and some say investors are simply pulling back after a strong run.

But one thing is clear: interest rates might start coming down sooner than expected. The 10-year U.S. Treasury yield has dropped from 4.80% to 4.32%, and some investors are now betting on rate cuts by the Federal Reserve as early as May or June. If that happens, it could boost Bitcoin and other risky assets.

Bitcoin is in a rough patch for now, but the seeds for the next big move might already be in place.

Simonas Brazionis

Blockchain Expert

Simonas is a crypto and blockchain expert with 6 years of experience. Passionate about the industry he educates others on blockchain technology, and continuously expands his knowledge. He has helped many newcomers understand crypto, navigate investments, and stay informed about trends like DeFi and NFTs.