- Bitcoin‘s recent 14% price drop may be part of a normal bull market correction, with analysts projecting a potential bottoming around $70,000.
- The decline followed disappointment over Trump’s executive order that failed to include direct federal Bitcoin investments.
- Historical data shows quantitative easing policies by central banks have significantly benefited Bitcoin’s price, with expectations for similar monetary policies in the future.
Bitcoin retreated to around $80,708 last week, falling over 14% after investors reacted negatively to President Trump’s March 7 executive order that disappointed market expectations. Despite growing concerns among some crypto investors about a possible early bear market, analysts suggest the current pullback represents a standard correction within an ongoing bull cycle.
According to Aurelie Barthere, principal research analyst at Nansen crypto intelligence platform, both cryptocurrencies and global markets are experiencing a “macro correction” that remains part of the broader bull market trend.
“This is a macro correction (US tech will be down by 3% in the future, as discussed), so we have to monitor BTC. Next level will be $71,000 – $72,000, top of the pre-election trading range,” Barthere told Cointelegraph.
The analyst added that markets are currently pricing in “a period of tariff uncertainty and fiscal cuts, no Fed put. Recession fears are popping up.”
Technical analysis suggests Bitcoin has broken through key support levels, complicating efforts to identify precise price floors. Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, indicated that a deeper retracement toward the “low $70,000’s range” could potentially “provide a foundation for a more sustainable recovery.”
Arthur Hayes, co-founder of Bitmex and chief investment officer of Maelstrom, reinforced this outlook in a March 11 post on X: “Be fucking patient. $BTC likely bottoms around $70k. 36% correction from $110k ATH, v normal for a bull market.”
Hayes further projected that following this correction, “THEN we get Fed, PBOC, ECB, and BOJ all easing to make their country great again,” referring to anticipated quantitative easing measures by major central banks worldwide.
Historical precedent supports Hayes’ optimism. During the previous quantitative easing period initiated by the Federal Reserve on March 23, 2020, in response to the COVID-19 pandemic, Bitcoin surged over 1,050% – climbing from approximately $6,000 to its then all-time high of $69,000 by November 2021. The Fed had announced purchases of over $4 trillion in treasury assets during that period.
Despite current market turbulence, analysts maintain positive outlooks for Bitcoin’s longer-term trajectory. Price predictions for late 2025 range between $160,000 and $180,000, suggesting confidence in the cryptocurrency’s fundamental strength beyond this correction phase.
The current retracement follows disappointment over Trump’s executive order, which outlined plans to create a Bitcoin reserve using cryptocurrency forfeited in government criminal cases but stopped short of the direct federal Bitcoin investments many investors had anticipated.
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