Will Bitcoin Crash Big Before Taking Off Again?
Bitcoin has consistently fluctuated between highs and lows. After the thrill of reaching an all-time high, sharp corrections set in, wiping out most of those massive gains before another rally. Some analysts believe that Bitcoin could crash by 90% in 2025 before the start of the next bull run.
But why such a dramatic drop? Should investors panic, or should they view this as an opportunity?
Experts Predict That Bitcoin May Experience a 90% Correction
Historical Market Cycles Repeat
Bitcoin has experienced numerous market cycles of highs and lows. After a major bull run, prices appear to have crashed to more than 80% or more before rebounding. If history is any guide, 2025 may exhibit a similar pattern.
Overleveraged Traders and Market FOMO
Surging prices lead to excessive leverage and speculative trading bubbles. A sudden change in the market can cause a chain of liquidations. Consequently, the market experiences a precipitous decline.
Macroeconomic Pressures
If interest rates or inflation continue to rise, or if geopolitical instability rears its head, then investors will shift towards ‘safer’ asset classes, which could drain liquidity from the crypto markets.
Post-Halving Slowdown
Bitcoin’s halving events — which cut the mining reward — are an important indicator of its future price. But they don’t usually kick off bull runs right away. The next bull run may not occur right after the 2024 halving but rather during an accumulation phase where prices are low.
How to Prepare—Not Panic
- Dollar-Cost Averaging (DCA): Invest a fixed amount at frequent regular intervals to reduce the risk of volatility.
- Don’t sell in the panic; focus on what is in the long term.
- Invest in a mixed bag: Choose a mixture of crypto and stable assets for value.
The Silver Lining: A Chance to Buy?
Although a crash of 90% doesn’t sound too pleasant, an expert investor knows these are the best entry points. In previous bear markets, Bitcoin has recovered strongly and rewarded those who held or bought the dip.
Conclusion
In 2025, Bitcoin could crash as its volatility isn’t going anywhere soon. Knowledgeable investors can harness the dip to reap greater profits instead of fearing it. Stay patient, stick to your strategy, and remember, after the largest drops come the largest climbs.
