Bitcoin Takes a Dive as Market Woes Loom
Bitcoin has seen a notable decline in price since hitting an all-time high just a month prior, raising alarms that the crypto market could be on the verge of a price crash. The bitcoin price is currently up approximately 35% compared to this time last year, having experienced significant fluctuations throughout 2025. It fell to about $75,000 in April before rebounding, coinciding with Tesla billionaire Elon Musk raising alarms regarding the $38 trillion U.S. debt burden. Traders are voicing their worries about a concerning situation developing for the bitcoin price, while analysts reveals that its clients are ramping up their investments in bitcoin. This comes as the bank’s analysts predict a forthcoming spike in bitcoin prices. According to a recent regulatory filing, the bank’s brokerage clients have ramped up their investments in bitcoin via BlackRock’s bitcoin exchange-traded fund by an impressive 64% in recent months. Jamie Dimon, recognized for his critical views on bitcoin and cryptocurrency, has recently softened his stance on the technology, recognizing the increasing demand from the bank’s clients for access to this highly-volatile asset.
The bets on bitcoin come as U.S. President Donald Trump continues to back bitcoin and cryptocurrency, pushing forward his administration’s crypto initiatives while also aligning his family’s financial interests with the digital asset space. Meanwhile, market has fully embraced bitcoin, as evidenced by BlackRock’s IBIT bitcoin ETF, which has become the fastest-growing ETF of all time this year. It reached $80 billion in assets under management five times quicker than the previous record holder, the Vanguard S&P 500 ETF. The recent spike in bitcoin prices aligns with gold hitting its all-time high, leading to speculation that bitcoin may be set for further expansion. Panigirtzoglou have adjusted their bitcoin price target upward, claiming that the worst of the volatility is “behind us.” They emphasize a volatility-adjusted comparison to gold that could drive the bitcoin price to $170,000, leading to a market capitalization of $3.5 trillion for bitcoin.
“This mechanical exercise thus implies significant upside for bitcoin over the next 6-12 months,” Panigirtzoglou wrote in a note, adding that having been $36,000 too high compared to gold at the end of last year, bitcoin is now around $68,000 too low.” The recent and sudden drop in bitcoin prices, pushing the cryptocurrency into a technical bear market, is linked to long-term holders selling off their assets. “We are seeing large, long-term holders of bitcoin take some profits after holding the asset for several years,” stated Alex Blume. “The selling is not having a dramatic impact on the price, however, because large institutions that have entered the market more recently, including ETFs, corporate treasuries, and sovereign wealth funds, are buying them up.” Looking ahead, it appears that the price is set to show less volatility than in the past and is expected to trade sideways for a while.
Some analysts have pointed out that bitcoin ETF inflows at the end of this week could signal a potential recovery for the bitcoin price and the wider crypto market. “Crypto ETF inflows finally turned positive, which is a rare green print after a muted week,” said Gracy Chen. “Far from buying-the-dips, that, to me, looks more like early signs of renewed institutional confidence after several sessions of hesitation.”
