The crypto market remains under significant pressure as investors react to economic uncertainties and ongoing trade war concerns. Bitcoin, currently trading around $84,000, is experiencing a correction phase, a trend mirrored by the broader cryptocurrency market. Despite this, the total market capitalization has shown a slight increase of 2.44%, reaching approximately $2.76 trillion. However, amidst this rebound, a palpable sense of uncertainty looms over whether the market can sustain this upward movement, with many sellers choosing to exit.
Analyst Predicts a 90-Day Bear Market
Market analyst Timothy Peterson has weighed in on the current market dynamics, suggesting that Bitcoin’s recent downturn, while notable, is relatively mild compared to historical bear markets. A bear market is traditionally defined as a period where prices fall at least 20% from their previous all-time highs. Peterson points out that this pullback is less severe than those witnessed in previous bear markets, forecasting that it might persist for only 90 days. His analysis covers ten bear market events, revealing that only four instances—2018, 2021, 2022, and 2024—exhibited longer durations.
Despite the current volatility, Peterson maintains an optimistic outlook regarding Bitcoin’s long-term viability. He attributes this resilience to strong trends in Bitcoin adoption, suggesting that a steep decline below $50,000 is improbable. Furthermore, he estimates that Bitcoin is unlikely to dip below the $80,000 mark, based on present momentum. Peterson foresees a potential slide within the next 30 days, but follows this by predicting a rally of 20-40% post-April 15, which could reinvigorate investor enthusiasm and elevate Bitcoin to new heights.
Trade War Fears Impact Investor Sentiment
Investor sentiment has been particularly affected by recent geopolitical developments, especially after U.S. President Donald Trump announced new tariffs on numerous trading partners. These tariffs sparked retaliatory responses from other nations, raising fears of a protracted trade war. As a result, many investors are retreating from riskier assets, including cryptocurrencies, in light of unfavorable macroeconomic conditions.
In its analysis, Glassnode’s Hot Supply metric reveals a troubling trend regarding Bitcoin held for a week or less. This figure has dramatically declined from 5.9% in November 2024 to just 2.3% in March 2025, indicating a decrease in speculative trading. Nansen research analyst Nicolai Sondergaard has voiced concerns that crypto markets may endure pressures related to these trade disputes at least until April 2025, when hopes of easing tensions might emerge.
Retail Traders Already Invested, Limiting Further Gains
Another significant factor influencing Bitcoin’s price is the saturation of retail traders in the market. According to data from CryptoQuant, a majority of retail investors have already committed capital to Bitcoin, which limits the potential for new inflows that could catalyze price surges. The current investment landscape is characterized by a cautious approach, as most retail traders are already exposed to BTC.
Moreover, Bitcoin’s reputation as a safe haven asset is being scrutinized, especially as its price movements have mirrored other risk assets during this turbulent economic period. The threat from new tariffs has led to negative price reactions, further complicating the narrative surrounding Bitcoin as a stable investment. Compounding these challenges are ongoing regulatory uncertainties. Experts predict that U.S. crypto banking restrictions could persist until January 2026, despite advocacy efforts aimed at establishing clearer regulations.
FAQs
How high can Bitcoin go in 2025?
According to projections from Coinpedia, Bitcoin could potentially peak at $169,046 this year if the prevailing bullish sentiment endures.
How much will 1 Bitcoin be worth in 2030?
If the trends of increased adoption continue, the price of 1 Bitcoin could rise to approximately $610,646 by 2030.
