Bitcoin (BTC) has experienced a sharp decline of over 14% in the past week, slipping from its recent highs to around $80,708. Investors reacted negatively to President Donald Trump’s March 7 executive order, which failed to directly include federal Bitcoin investments. This downturn has led to speculation about the possibility of an early bear market cycle. However, experts suggest that the current retracement is a natural phase within the ongoing bull market.
Market Correction, Not a Bear Trend
Aurelie Barthere, principal research analyst at Nansen, emphasized that Bitcoin’s pullback is part of a broader macro correction affecting both cryptocurrencies and traditional markets. Barthere noted that most cryptocurrencies have lost key support levels, making short-term price predictions challenging. However, Bitcoin’s next significant support level is projected to be between $71,000 and $72,000, aligning with its pre-election trading range.
The correction aligns with ongoing global economic concerns, including fiscal tightening and recession fears. According to Barthere, markets are adjusting to a period of tariff uncertainty and reduced government spending, factors that are being priced into both crypto and stock markets.
Arthur Hayes: Bitcoin’s Retracement is “Very Normal”
BitMEX co-founder and Maelstrom CIO Arthur Hayes echoed the sentiment that Bitcoin’s decline to around $70,000 is well within expectations for a bull market. In a March 11 X post, Hayes reassured investors to “be patient,” suggesting that a 36% correction from an all-time high (ATH) of $110,000 is typical during bullish cycles.
Hayes also pointed out that potential monetary easing from central banks—including the U.S. Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BOJ)—could provide a renewed catalyst for Bitcoin’s next leg up.
Historical Trends Support Bullish Outlook
Quantitative easing (QE) has historically been a significant driver of Bitcoin’s price. During the last major QE period, Bitcoin skyrocketed by over 1,050%, rising from $6,000 in March 2020 to $69,000 by November 2021. With analysts predicting Bitcoin to reach $160,000–$180,000 by late 2025, the current retracement could serve as a launchpad for future gains.
Also Read: US Weighs Selling Gold to Buy Bitcoin, A Strategic Shift in Reserve Assets?
Despite short-term volatility, long-term Bitcoin investors remain optimistic, positioning the current price dip as a buying opportunity rather than a cause for concern.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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