Svmuu News Bitcoin has been on a steady decline since last October, with the price currently hovering around half of its all-time high of $126,000, and the market remains in a deep bear market.Several industry analysts believe that the current pressure on Bitcoin stems primarily from three factors: the four-year cycle, macroeconomic inflationary pressures, and market leverage liquidations.
Matt Hougan, Chief Investment Officer at Bitwise, stated that the long-standing “four-year cycle” of Bitcoin continues to influence investor sentiment. Historically, Bitcoin typically experiences a roughly three-year bull run followed by a one-year correction period; investors have come to expect this cyclical pattern and are beginning to reduce some of their long-term holdings as of late 2025.
In addition, the macroeconomic environment is a key factor weighing on Bitcoin. Zach Pandl, Head of Research at Grayscale, noted that rising inflation pressures in the U.S. have dampened market expectations for interest rate cuts, prompting investors to shift toward traditional assets with higher yields and leading to outflow pressures on risk assets, including cryptocurrencies.The short-term bottom is expected to be around $58,000, and future trends will continue to be influenced by interest rate policy, corporate Bitcoin buying activity, and progress on U.S. cryptocurrency regulatory legislation.
Excessive market leverage has also exacerbated this correction.As many investors expanded their Bitcoin exposure through borrowing and financing during the bull market, the decline in open interest in derivatives following the market downturn has put pressure on digital asset custodians. Strategy’s stock price has fallen by about 75% since last October, and the corporate hoarding Bitcoin model it previously promoted is now being reevaluated by the market.
However, some analysts remain bullish on Bitcoin’s future. Adrian Fritz, Chief Investment Strategist at 21Shares, expects Bitcoin to bottom out this summer and rebound once interest rates turn accommodative and geopolitical tensions ease, with a year-end target price of $100,000. (Fortune)