Home Bitcoin Price Prediction – Is The Biggest Crash Of All Time Coming?

Bitcoin Price Prediction – Is The Biggest Crash Of All Time Coming?

The Bitcoin price has risen exponentially since the fourth financial quarter of 2023, up 163% from the start of October last year.

If the Bitcoin price closes the month of March over $61,157, it would be the first time in its history that BTC ends seven straight months in the green.

However, whether Bitcoin achieves this historic feat or not remains dubious. The largest cryptocurrency has been in a short term bearish trend over the past week, declining by 14% in that period and yesterday seeing the largest price crash since the FTX collapse.

Bitcoin price monthly returns

The increasing macroeconomic risks and a hawkish SEC could prove too much for an already overheated crypto market. Considering that the Bitcoin price has seen one of its strongest bull rallies ever, one of the biggest corrections could also be coming. 

Why Is Crypto Down Today? How Low Can BTC Go?

The tide has been shifting slowly but steadily in favor of the bears, as highlighted perfectly by the spot Bitcoin ETF flows. 

The ETFs recorded an outflow of $154 million on March 18th, their first negative day since March 1st. Grayscale had its worst ever day – an outflow of $642.5 million – as did Fidelity, with a record low inflow of just $5.9 million. 

The ETFs have acted as a risky proxy for Bitcoin so far, with the popular market sentiment being “the ETFs will buy the dip anyway”. The switch from record inflows to record outflows is sure to have an adverse impact on the BTC price. 

The bearish trend in Bitcoin is primarily due to the increasing macroeconomic risks, as highlighted by the worse-than-expected bad Consumer Price Index and Producer Price Index data. The market has already shifted its expectation from 7 rate cuts this year to 3, data from CME FedWatch reveals. The first such decision by the Fed will come later today, March 20th, at the FOMC meeting. 

However, analysts such as Jesse Cohen, the global market analyst at Investing.com, believes that the Fed may not pivot to quantitative easing at all this year, which could be disastrous for the broader equities and the crypto market. According to macro investor Jim Bianco, the estimates of the February PCE – which is the Fed’s favorite inflation indicator – will further cement this sentiment. 

The history is also not in Bitcoin’s favor. The BTC price traditionally corrects 14 to 28 days before the Bitcoin halving. According to a popular crypto analyst Ali Charts, market makers may try to grab a huge liquidity pool below $50,000, which could lead to the Bitcoin price falling to $49,000

Bitcoin Price Prediction – Is The Top In For BTC?

Despite an impending crash, the top may not be in for Bitcoin just yet. The Pi Cycle Top indicator, which has been incredibly accurate in calling the peaks during previous cycles, reveals that there is still plenty of room for growth. 

Bitcoin analyst Willy Woo has also mentioned the possibility of a double pump cycle as also seen in 2013. This could lead to a local top in mid-2024, followed by another top in 2025. 

Aside from its cyclic nature, the Bitcoin price has strongly been correlated with global liquidity. Director of Global Macro at Fidelity Jurrien Timmer reveals that liquidity is on the rise again since mid-2023, spurring stocks and cryptocurrencies with it. 

Crypto and macro analyst @tedtalksmacro reveals that considering Japan, which is the largest foreign owner of US Treasuries, is now pivoting to quantitative tightening, the liquidity in US may surge even more. Consequently, the Bitcoin price could restart its bullish trajectory after the halving. 

Are Presale Tokens A Better Investment?

Considering the negative sentiment surrounding Bitcoin, investors could consider switching to stablecoins or presale tokens as neither of the two are impacted by short-term price action. 

Presale alternatives to Bitcoin are already seeing strong growth, with Green Bitcoin quickly raising over $6 million in its presale. Analysts like Cilinix Crypto predict that $GBTC could display a 10x growth after its launch, especially acting as a beta bet on Bitcoin. 

Green Bitcoin combines the legacy of BTC with the eco-friendliness and high scalability of Ethereum. Being an ERC-20 token, it also introduces on-chain staking to the Bitcoin ecosystem through an innovative program. 


About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

James Spillane
Crypto Writer

James Spillane is a crypto trader and writer, producing analytical articles for ReadWrite on the latest market trends and price action of trending assets. Hailing from the UK, James is a BSc Physics graduate from Imperial College London and former Cadet Force Adult Volunteer with Bedfordshire & Hertfordshire Army Cadet Force. When not writing and editing, James enjoys working out and travelling, currently working remotely in South East Asia. James' latest coverage focuses on the growing meme coin market, tracking assets like Dogecoin and Shiba Inu and newer contenders to their market share.

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