Bitcoin (BTC) plunges 50% from October peak… Warning of a possible drop to the $30,000 level
Summary
- Wolfe Research said Bitcoin (BTC) has fallen more than 50% from its $126,000 October peak, and that after rebounding to around the $72,000 level it has been unable to sustain upward momentum.
- It warned that, given the roughly 75% average drawdown in past four-year-cycle bear markets, Bitcoin could fall to around the $30,000 level in this cycle as well.
- The report said macroeconomic and political uncertainty, geopolitical tensions and risk-off sentiment are limiting clear catalysts for a rebound, and it cannot rule out that the recent rebound may be temporary.
Bitcoin (BTC) has fallen more than 50% from its peak of $126,000 recorded in October last year, raising the possibility of further declines.
According to Walter Bloomberg, a breaking-news economics account, on the 12th (local time), Wolfe Research said in a recent report that Bitcoin rebounded to around the $72,000 level but has been unable to sustain upward momentum.
Given that the average drawdown in past four-year-cycle bear markets reached about 75%, it warned that in this cycle as well, Bitcoin could fall to around the $30,000 level.
The report said the macroeconomic and political uncertainty that triggered the latest selloff, along with the broader market’s risk-off sentiment, has yet to be resolved. It added that clear catalysts for a rebound—such as legislative progress or improved investor sentiment—also appear limited.
It further noted that geopolitical tensions and economic uncertainty are weighing on risk assets broadly, including Bitcoin. The report said it cannot rule out the possibility that the recent rebound is only temporary.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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