Bitcoin's surge to $70,000 deemed "natural" by analyst Nansen
Bitcoin could potentially correct to around $70,000 during the current bull market, according to analyst Aurelien Barter of Nansen. In an interview with Cointelegraph, Barter suggested that this range, exceeding levels seen prior to the U.S. November elections, may follow the broader macroeconomic trend.
Uncertainty about tariffs, the Federal Reserve's key rate cut, and recession fears are pushing both traditional and digital assets down, Barter noted. Ilya Kálchev, an analyst at Nexo, allows that Bitcoin could fall below $70,000 in search of a base for sustainable recovery. Former BitMEX CEO Arthur Hayes believes a drop to this level is very likely, as a 36% correction from the $110,000 peak is common in a bull market.
Trading around $80,000 at the moment, Bitcoin has recently tested this level. Market anxiety peaked on February 27 after the crash, with participants fearing a drop to $70,000, according to Santiment's social media analysis. However, Santiment experts predict that the real "point of capitulation" will come when traders discuss the $50,000-$69,000 range, and expectations of a rise to $100,000-$119,000 become scarce.
The formation of a cryptocurrency reserve by the government, as outlined in an executive order by former President Donald Trump, was initially disappointing to the market. Matt Hougan, Bitwise investment director, believes that many misunderstood the document. Instead of selling 200,000 BTC seized by authorities, the order contains a direct instruction to the Treasury and Commerce departments to develop strategies for additional Bitcoin purchases.
The White House crypto summit on March 7, attended by Trump, failed to positively impact the market due to the lack of specifics in the government's plans to develop the industry. The event left investors disappointed. While a correction to $70,000 is possible, it is not a common prediction among analysts, who generally anticipate Bitcoin to remain above $100,000 for the year.
Technology, with its influence in the financial sector, is playing a significant role in the volatile world of Bitcoin investing. Analysts Ilya Kálchev and Arthur Hayes, for instance, predict that Bitcoin could drop below $70,000 due to market uncertainties and recession fears, despite recent peaks above this level.
