Bitcoin is at a crossroads, according to a recent analysis of market moves and trader sentiment. While the cryptocurrency experienced a sharp drop from around $121,000 to $102,000 following news of new US tariffs on Chinese goods—a crash that led to over $19 billion in liquidations—it has since rebounded to approximately $112,400.
Veteran trader Peter Brandt believes Bitcoin could still quickly reclaim its all-time high of $125,100, but only after one more “huge shakeout” or major price correction. However, he also warned of a possible, much more severe drop, suggesting that a violation of a key long-term price trend (the “parabola”) has historically led to a 75% decline, which could potentially send Bitcoin back to the $50,000–$60,000 range.
Optimistic View: Macro Factors and “Buy Everything”
Despite the recent volatility, many prominent figures remain bullish, citing supportive macroeconomic conditions:
- Quantitative Easing is Bullish: BitMEX co-founder Arthur Hayes urged traders to “buy everything,” after US Federal Reserve Chair Jerome Powell signaled that quantitative tightening may be over. Quantitative easing is seen as favorable for crypto as it encourages lending and lowers borrowing costs.
- Rate Cuts and the “Goldilocks Zone”: Swyftx lead analyst Pav Hundal sees the current economic data—including lower oil prices, softening demand, and signs of distress in the US labor market—as making further interest rate cuts by the Fed “inevitable.” He calls this scenario a “goldilocks zone for Bitcoin.”
- Favorable Quarter Ahead: Macroeconomist Lyn Alden also suggested that the current quarter would likely be “pretty favorable” for Bitcoin.
A Reminder on Risk
The weekend crash served as a sharp reminder of the market’s inherent dangers, especially for those using high leverage. Charles Edwards of Capriole Investments stressed that traders must “always consider multi-year, long-term risk,” adding that even leverage multiples above 1.5x are dangerous. Despite the warning, Edwards believes the recent volatility is temporary and maintains an “up” outlook for the coming weeks.
October 2025, Cryptoniteuae
