Bitcoin price tipped to fall to $30,000 amid investor fears | UK | News
Fresh fears have arrived in the cryptocurrency market after analysts at Wolfe Research warned that Bitcoin could still face a deeper correction, with prices potentially falling towards $30,000 if past market cycles repeat. The world’s largest digital asset has already fallen sharply in recent months.
At its lowest point earlier this month, Bitcoin is down more than 50% from a record high of around $126,000 reached late last year. Although the cryptocurrency has made a modest recovery since then, experts say investors should not assume the worst is over. According to research firm Wolfe Research, Bitcoin’s current decline is still relatively mild compared to previous declines. Analyst Rob Ginsberg said historical patterns show that each four-year Bitcoin bear market has seen an average decline of 75% from peak to trough. He added that the market only briefly reached a 50% decline before recovering, and if history repeats itself, the price could fall much further.
Ginsberg wrote: “The signal of danger is the average decline in each cycle. We briefly hit 50% before jumping right back, but if history repeats, 75% would mean we’re approaching $30,000.”
Bitcoin fell to a 16-month low of $60,062 on February 5 and rebounded by about 15% the next day to around $72,000. However, this recovery quickly lost momentum.
The cryptocurrency has since traded mostly between $66,000 and $72,000, most recently near $68,000; It’s up about 7% in the last five days, but it’s still well below its peak.
Wolfe Research said the pressures driving the sell-off remain and are not expected to ease anytime soon.
The firm noted that ongoing economic uncertainty, geopolitical tensions and weak sentiment towards high-risk investments continue to put pressure on cryptocurrencies and stocks.
Analysts also noted that attempts to introduce a clearer regulatory framework for digital assets in the US have faced political resistance, raising doubts that any major crypto market structure legislation will pass this year.
Ginsberg added that no significant macroeconomic, sentiment or regulatory changes are expected to quickly reverse this trend in the near future.
The researchers warned that prices had stabilized for now, but that it would be difficult to conclude that the market had reached a definitive bottom and further volatility was likely.
If previous cycles are repeated, analysts believe that Bitcoin could face a deeper correction, potentially pushing the price towards the $30,000 level.
