Following the recent market fluctuations, crypto analysts predict that the current volatility is temporary and that Bitcoin will enter an uptrend again in the coming weeks.
Experienced investor Peter Brandt said that Bitcoin could retest the $125,100 all-time high (ATH) in the short term, but a significant correction wave could occur in the process.
“Either there will be a major shakeout followed by a new ATH within a week, or a breakdown of the parabolic structure could lead to a drop of up to 75%,” Brandt said.
Brandt stated that the 80% declines seen in the past will not be repeated, but the price could fall to the $50,000-$60,000 range.
More than $19 billion was liquidated in the crypto market after US President Donald Trump announced 100% tariffs on Chinese goods on Friday. Bitcoin's price fell from $121,000 to $102,000.
Charles Edwards, founder of Capriole Investments, called the surge a warning about leveraged trading. “Even leverage above 1.5x is dangerous,” he said.
“You always have to consider the long-term risks,” he said. Edwards added that his outlook for the coming weeks was “bullish.”
BitMEX co-founder Arthur Hayes wrote on his X account, “Bring the truck back and buy everything,” after US Federal Reserve Chair Jerome Powell announced the end of quantitative tightening.
According to Hayes, the period of quantitative easing creates a positive environment for crypto markets because cheaper credit and increased liquidity support investment flows.
Pav Hundal, chief analyst at Swyftx, also said that the economic data is sending positive signals for Bitcoin: “With falling oil prices and a weakening labor market, it seems inevitable that the Fed will cut interest rates this month. This could be a golden period for Bitcoin.”
Macroeconomist Lyn Alden said in her latest statement, “I think the next quarter will be quite favorable for Bitcoin.”
While short-term corrections are possible, Bitcoin could reach new records before the year is out, according to experts.