Bitcoin has been trading in the range of $94 thousand – $104 thousand According to CEO Foundation Devices Zach Herbert, digital gold traditionally goes through the same cycles approximately every 4 years that depend on halving. This means that we should expect a further decline.
“I have been in Bitcoin since 2013. All bull markets follow a similar scenario: halving, then pause, then growth, a sharp rise, a crash, and a few years of stability before the cycle repeats itself again,” he explained.
Although some longtime bitcoin holders believethat the coin can enter the «supercycle», Herbert is skeptical.
“I don’t really believe in this theory. I think we will see the same patterns that we have seen over the last decade,” he said.
Given the current market, some analysts, including BlackRock’s head of digital assets, have suggested that bitcoin can act as a «hedge asset» – an analog of gold that shows growth in times of economic instability. However, this theory is questionable, as cryptocurrencies often move in the same direction as risky assets such as stocks, which also declined after the publication of the new inflation report.
At the same time, investment flows into Bitcoin ETFs remain positive: according to Farside Investors, spot Bitcoin ETFs are expected to record weekly inflows in 2025, although this week, $243 million in outflows have already been recorded.
On January 20, bitcoin updated its all-time high and exceeded $109 thousand when the market expected favorable regulatory changes after President Trump’s inauguration. However, since then, the price has remained extremely volatile, and recent macroeconomic data has created even more uncertainty for investors.
Nevertheless, Roundtable host Rob Nelson noted that the 10% fluctuation in BTC’s value is now much smaller than the 30% correction in previous cycles:
“A $10,000 drop right now is only a 10% correction. It doesn’t seem extreme, especially for an asset that is traded 24/7,” he emphasized.
Source: The Street
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