The price of bitcoin (BTC) will continue to experience cyclical booms and busts, resulting in a drawdown of up to 70% during the next market downturn, according to Vineet Budki, CEO of venture firm Sigma Capital.
There will be a BTC retracement of 65% to 70% in the next two years because traders do not understand the asset they are holding, Budki told Cointelegraph at the Global Blockchain Congress 2025 in Dubai, UAE. He said:
“Bitcoin will not lose its utility if it drops to $70,000. The problem is that people don’t know its utility, and when people buy what they don’t know and understand, they sell it first; that’s where the selling pressure comes from.”
Despite this, Budki is still the bet Bitcoin will hit $1 million or more per coin over the next 10 years and said user adoption will grow from a combination of price speculation and, more importantly, real-world BTC use cases.
Analysts, business executives and investors continue to forecast when Bitcoin will reach a seven-figure price tag and whether the market dynamics that have defined BTC cycles since its inception in 2009 will remain valid in 2025.
Related: Bitcoin White Paper Turns 17 As First Red October In 7 Years Looms For BTC
Has Bitcoin taken out the four-year cycle?
The Bitcoin’s four-year cycle is deadaccording to Arthur Hayes, market analyst and co-founder of the Bitmex crypto exchange.
Bitcoin’s price is influenced by macroeconomic factors, such as interest rates and money supply growth, and less by cyclical patterns, Hayes said.
https://www.youtube.com/watch?v=hb0z1ti8uys
Other analysts point to growing institutional adoption and their availability Financial institutions as a stabilizing force That reduces price volatility and calms the markets.
Financial institutions, including governments, digital asset Treasury Companies’ Exchange-Traded Funds (ETFs) and Cryptocurrency Exchanges collectively hold more than 4 million BTC, nearly 20% of the total Bitcoin supply, according to Bitcointreasures.net.
However, Seamus Rocca, the CEO of Crypto-Friendly Bank Xapo Bank, told Cointelegraph that the The four-year cycle remains in play Because investors currently view BTC as a risk-on asset, despite its store-of-value properties.
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