Bitcoin price dives amid ‘perfect storm’ predictions

Anthony Cuthbertson
·2-min read
An image of bitcoin displayed on a screen as delegates listen to a panel during the Interpol World Congress in Singapore on 4 July, 2017 (Getty Images)
An image of bitcoin displayed on a screen as delegates listen to a panel during the Interpol World Congress in Singapore on 4 July, 2017 (Getty Images)

Bitcoin’s market value has plunged by more than $200 billion (£158bn) since the start of the month following a major sell-off of the world’s leading cryptocurrency.

The latest price fall comes after a record-breaking rally that saw bitcoin peak just above $73,000 in mid March. It has since retreated to just over $60,000 amid concerns that the 18-month bull market may be coming to an end.

Despite the recent downward trend, some analysts have described the current market situation as a “perfect storm” that could see it surge to new heights over the coming months, citing technological advancements, regulatory changes and broader economic shifts.

In a market report on Tuesday, analysts at crypto ATM provider Bitomat said the recent bitcoin halving that saw its supply constricted, combined with renewed demand brought about by US regulators approving bitcoin exchange-traded funds (ETFs), could see the cryptocurrency reach between $130,000 and $220,000 by 2025.

“The years 2020 and 2021 saw record-high prices, institutional adoption, and significant mainstream integration, creating a perfect storm for bitcoin‘s growth,” the analysts noted. “As we look forward to 2025, the convergence of these factors presents a compelling case for another major bull run.”

Other major cryptocurrencies have also seen significant price drops in recent days, with Ethereum (ETH), Ripple (XRP) and Binance Coin (BNB) all falling by more than 4 per cent over the last week.

On Tuesday, the Crypto Fear and Greed Index, which serves as an indicator for market sentiment, fell to its lowest point since September 2023, when the price of bitcoin was around $26,000.

Falling into the ‘Fear’ territory suggests investors have “over-sold irrationally”, according to the crypto price index CoinMarketCap.

“Both in September and now, the price and index’s sudden drop out of a range has attracted buyers, laying the groundwork for gains after a prolonged slide,” Alex Kuptsikevich, a senior market analyst at FxPro, told The Independent.

“However, the recovery momentum paused Wednesday morning, raising the question of whether we’ll see a renewed selloff. Such a turn of events risks breaking the multi-month bullish view on bitcoin and, with it, the entire cryptocurrency market... But the base case scenario now remains the development of a rebound and the preservation of the long-term bull trend.”

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Germany Irks EU Leaders by Resisting Joint Defense Funding

    (Bloomberg) -- Germany pushed European Union leaders to drop language on joint defense spending, despite opposition from other member states that believe extra resources are needed to ramp up the bloc’s capabilities.Most Read from BloombergBiden’s Disastrous Debate Accelerates Doubts Over CandidacyGavin Newsom Is Ready for the Biden EmergencyDemocrats Question Replacing Biden: Here’s How It Could WorkSupreme Court Overturns Chevron Rule in Blow to Agency PowerBiden Struggles as He Spars With Tru

  • Nvidia Retail Craze Unleashes Big Moves in the World of ETFs

    (Bloomberg) -- From the growth of get-rich-quick schemes to becoming a make-or-break factor for outperformance, Nvidia Corp.’s latest market roller coaster is a cautionary tale of the importance of the AI chip-maker in the $9.2 trillion US ETF complex.Most Read from BloombergSupreme Court Poised to Allow Emergency Abortions in IdahoSpaceX Tender Offer Said to Value Company at Record $210 BillionBolivia’s President Arce Swears in New Army Chief After Coup BidChina’s Finance Elite Face $400,000 Pa

  • The Issa brothers couldn’t make Asda work. Can their ‘cut-throat’ friends do any better?

    Customers arriving at Asda’s Bournemouth superstore this month would have been forgiven for immediately turning around and going home.

  • Get ready for a stock market correction, says the Bank of England

    The UK's central bank reckons there's a heightened risk of a sharp stock market correction. Here's a share I've got my eye on, in case that happens. The post Get ready for a stock market correction, says the Bank of England appeared first on The Motley Fool UK.

  • This one-time fast-growth stock has become a dividend play — with benefits!

    Growth stock to dividend star! Yet this share price remains buoyant and there's a potential catalyst ahead for the business. The post This one-time fast-growth stock has become a dividend play — with benefits! appeared first on The Motley Fool UK.

  • The Netherlands stung savers with 100 per cent tax rates – and now owes them billions

    The Netherlands is expected to pay billions of pounds in compensation to taxpayers after a divisive levy on investments and second homes was shot down by the Dutch Supreme Court.

  • Questor: This pharma giant’s multi-billion pound legal threat is making it a bargain buy

    Questor relishes nothing more than the opportunity to purchase a high-quality company at a bargain-basement price.

  • 3 stocks that Fools have recently sold

    Two US-listed firms and one British stock — why did these three Fools sell these particular shares? The post 3 stocks that Fools have recently sold appeared first on The Motley Fool UK.

  • 1 FTSE 100 stock investors might shun, but I’d snap up in a heartbeat!

    Some FTSE 100 stocks have fallen foul of investors. However, that doesn’t mean they’re not good investments for me and my holdings. The post 1 FTSE 100 stock investors might shun, but I’d snap up in a heartbeat! appeared first on The Motley Fool UK.

  • Is the stock market about to crash? And what should I do next?

    The Bank of England has warned a stock market crash could be coming. Is it time to sell up and hide, or should investors drive on? The post Is the stock market about to crash? And what should I do next? appeared first on The Motley Fool UK.

  • I’d buy these investment trusts when interest rates fall

    Want to move from a Cash ISA to a Stocks and Shares ISA, but with an eye on risk? Investment trusts like these might be one way. The post I’d buy these investment trusts when interest rates fall appeared first on The Motley Fool UK.

  • £17,800 in savings? I’d buy UK shares to try and retire early

    Can our writer retire early, even if just by a year or two, thanks to putting some money into UK shares now? He hopes so -- here's how! The post £17,800 in savings? I’d buy UK shares to try and retire early appeared first on The Motley Fool UK.

  • I’d buy these 3 cheap shares to try and build a £590 monthly second income

    Christopher Ruane explains how and why he'd buy this trio of FTSE 100 shares to build a second income of almost £600 each month. The post I’d buy these 3 cheap shares to try and build a £590 monthly second income appeared first on The Motley Fool UK.

  • Here's the Net Worth of Married Couples by Age: How Do You Stack Up?

    A recent study from the career experts Zety says that 40% of respondents fear retirement more than death. And almost nine in 10 responded that their biggest retirement fear is not having enough income. For married couples, planning retirement for two people can … Continue reading → The post Average Retirement Savings for Married Couples By Age appeared first on SmartAsset Blog.

  • Warren Buffett donates again to the Gates Foundation but will cut the charity off after his death

    Investor Warren Buffett announced another $5.3 billion in charitable gifts Friday, but in a major shift of his longtime giving plan he said he plans to cut off donations to the Bill & Melinda Gates Foundation after his death and let his three children decide how to distribute the rest of his $128 billion fortune. Buffett laid out his new plan for his estate in an interview with the Wall Street Journal. The 93-year-old billionaire who leads Berkshire Hathaway didn't immediately respond to questions from The Associated Press on Friday about his plan that calls for Howard, Susie and Peter Buffett to unanimously agree where to give his Berkshire Hathaway stock after his death.

  • How the Tories’ 14-year tax raid is finally being laid bare

    The number of pensioners paying income tax has risen by 42pc since the Tories came to power, as the true cost of the Government’s stealth tax raid is laid bare.

  • Up 195%! 2 free investing lessons from Rolls-Royce shares

    Rolls-Royce shares had a stunning 2023 -- and so far 2024’s been very strong too. Christopher Ruane considers what he might learn as an investor. The post Up 195%! 2 free investing lessons from Rolls-Royce shares appeared first on The Motley Fool UK.

  • Nationwide customers face salary payment delays - as HSBC, Barclays and Virgin Money users hit by banking glitches

    Nationwide, HSBC, Barclays and Virgin Money customers have been affected by problems with banking services, leaving some unable to send and receive money. HSBC UK said there had been a "separate payments issue affecting multiple banks", and Nationwide blamed a "third-party payments issue". Barclays also alerted customers, while Virgin Money said access to its app has been fully restored after issues in the morning - but there is a backlog of payments to process.

  • Without savings, I’d use the Warren Buffett method as I aim to get rich

    Christopher Ruane explains how he’d take some important lessons from master investor Warren Buffett while working to build long-term wealth. The post Without savings, I’d use the Warren Buffett method as I aim to get rich appeared first on The Motley Fool UK.

  • EverQuote's (NASDAQ:EVER) growing losses don't faze investors as the stock rallies 7.9% this past week

    It might be of some concern to shareholders to see the EverQuote, Inc. ( NASDAQ:EVER ) share price down 14% in the last...