EXCLUSIVE: Bitcoin Tumbling, But Bull Market Top Isn’t In Yet, Experts Say
Cryptocurrency experts are largely united in their belief that Bitcoin‘s (CRYPTO: BTC) long-term bull run remains intact, even as the apex crypto struggles to keep short-term bearish fears away.
Hawkish Fed Threw A Wrench In Bitcoin’s Works
The recent market downturn, according to Bitfinex analysts, is primarily a result of “the Fed reducing the number of cuts in 2025 to two, signaling that it was taking a highly hawkish stance.”
They further noted that it suggests a shift in market dynamics that might not be completely priced in, especially given that the FOMC minutes were released, but the market continues to sell off.
Marcin Kazmierczak, co-founder & COO of Redstone, suggests that while macro conditions are a factor, “It’s important to remember that the past year has been wild for the industry—BTC is up nearly 100% YoY—and we haven’t seen a significant market downturn in quite a while. Naturally, some market participants are taking profits.”
He also points towards tax season contributing to the sell-offs.
However, Marcin added that structurally, nothing major has changed, and crypto as an asset class still has plenty of tailwinds heading into 2025.
Tom Trowbridge, co-Founder of Fluence, sees the current dip “driven by the Fed’s hawkish stance and possibly a misunderstanding of the DOJ’s Bitcoin sales news.”
Still, “any short-term moves we’re seeing now will ultimately be irrelevant as other nations follow the U.S.’s lead, causing Bitcoin’s price to surge,” Trowbridge emphasizes.
Illia Otychenko, Lead Analyst at CEX.IO, frames the dip within Bitcoin’s historical cycles, stating, “Historically, double-digit dips have been a hallmark of post-halving …
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