Bitcoin might be heading toward a pullback to $70,000, but don’t panic just yet—it’s actually part of a “natural correction within a bull market,” according to Nansen’s analysts speaking with Cointelegraph.
Despite some concerns that this might signal an early onset of a bear market, the expected drop to around $70,000 could just be another routine move in this bull run. Last week, Bitcoin saw a drop of over 14%, falling to about $80,708, largely driven by investor disappointment over the lack of federal investment into Bitcoin from President Trump’s executive order on March 7. This order outlined a plan to create a Bitcoin reserve using cryptocurrencies confiscated in federal criminal proceedings.
Even though investor sentiment has taken a hit, global crypto and financial markets are still riding through what’s known as a “macro correction” during a broader bull market, explains Aurelie Barthere, Principal Research Analyst at Nansen.
Bitcoin’s Short-Term Struggles: Part of a Bigger Picture
Looking at the bigger picture, many cryptocurrencies have broken through key support levels, making it harder for analysts to predict future price floors. “This is a macro correction (U.S. tech stocks may drop by 3%, as discussed), so it’s crucial to keep an eye on Bitcoin,” says Barthere. “The next key level to watch is around $71,000 to $72,000—the top of the pre-election trading range.”
Essentially, the market is still correcting itself within the larger bull trend. Stocks and crypto have already priced in uncertainties about tariffs, tax cuts, and the fact that there’s no “Fed put” (meaning no immediate action from the Federal Reserve to bail out the markets). Plus, recession worries are beginning to creep in.
Other analysts, like Iliya Kalchev from Nexo, believe that a deeper pullback to the lower $70,000 range might actually set the stage for a more sustainable rally in the future.
Arthur Hayes: A $70,000 Bitcoin Pullback? No Big Deal
Arthur Hayes, the co-founder of BitMEX and Chief Investment Officer at Maelstrom, sees this potential dip to $70,000 as completely normal in the context of a bull market. In a recent post on X, Hayes said, “Be patient. Bitcoin will likely bottom around $70,000. A 36% correction from the all-time high of $110,000 is totally normal in a bull market.”
Hayes also pointed to central bank policies, suggesting that once the Federal Reserve, the People’s Bank of China (PBOC), the European Central Bank (ECB), and the Bank of Japan (BOJ) ramp up their monetary easing again, things will pick up. This so-called “quantitative easing” (QE) involves central banks increasing the money supply by purchasing government bonds and other assets, a move traditionally positive for Bitcoin’s price.
Looking back, when QE was implemented during the COVID-19 pandemic, Bitcoin surged more than 1,050%, from just $6,000 in March 2020 to $69,000 in November 2021.
Optimism for Bitcoin’s Future
Despite the current fluctuations, analysts are still optimistic about Bitcoin’s price trajectory by the end of 2025. Many predict that the price could range between $160,000 and $180,000, signaling that the future looks bright for this digital asset.
So, if you’re feeling uneasy about Bitcoin’s dip, remember: it might just be a pit stop before the ride to new heights.