Experts from Wolfe Research caution that investors should prepare for further volatility in Bitcoin following its recent sharp decline.
Sharp Bitcoin Decline
Bitcoin, the world's largest cryptocurrency, has fallen by 21% from its all-time high, dropping below $90,000 for the first time since November amid a broad risk-off sentiment in financial markets.
Analysis from Wolfe Research
Wolfe analyst Read Harvey notes that Bitcoin is at a crucial point and could move back into the $70,000 range. He stated that $91,000 had previously been a strong support level, but now that level is no longer in play. Harvey added that without a V-shaped recovery, this would be a bearish signal. If downward pressure continues, Bitcoin might fall back to levels seen before the post-election breakout.
General Market Trends
Bitcoin's recent slide happened without a clear catalyst. With the election of a pro-crypto President, investor optimism was high, but concerns over a slowing economy and broader stock sell-offs have impacted the cryptocurrency. As Harvey mentioned, uncertainty is at the forefront, and risk appetite is rapidly decreasing.
Despite the recent pullback, Bitcoin is up 23% since the election but has lost 8% so far in 2025. The ongoing volatility and market trends require caution from investors.
