Bitcoin (BTC) Bears Face Increasingly Thin Air as the Market Signals the Time for Dips Might Be Waning

The landscape for Bitcoin (BTC) bears is becoming increasingly challenging, with market analysts suggesting that the conditions are ripe for Bitcoin to achieve new all-time highs by the end of March.

Market conditions are making it increasingly difficult for Bitcoin (BTC) bears to maintain their stance, with some analysts suggesting that the stage is set for the cryptocurrency to reach new all-time highs by the end of March. According to Pav Hundal, lead analyst at crypto exchange Swyftx, the current macroeconomic backdrop is highly favorable for Bitcoin, largely due to a pro-crypto policy environment.

Hundal told Cointelegraph that volatility in Bitcoin’s price has returned to levels last seen in November, around the time of the U.S. election. This period saw Bitcoin begin a major rally post-election, where the cryptocurrency broke through its previous peak of $73,679 and went on to hit the $100,000 mark by early December. At the time of writing, Bitcoin’s price is hovering around $101,600, indicating a sustained high level of interest and investment in the digital currency.

The volatility, according to Hundal, is not just set to continue but is expected to increase, which he warns could prove devastating for both bullish and bearish speculators. This spike in volatility is seen as a precursor to significant price movements, which could lead to new highs if the market momentum continues.

The narrative around Bitcoin has been heavily influenced by political outcomes, with the market reacting strongly to the results of the election. Prior to confirmation of Donald Trump’s victory, there were major liquidations in the crypto market, with Bitcoin briefly dropping below $69,000. However, post-election, the sentiment shifted drastically, largely due to optimism about a policy environment more conducive to cryptocurrency growth.

Hundal described the current situation to the publication as entering “the most accommodative era of policy making in the history of crypto,” highlighting a stark contrast between the macro conditions and the somewhat subdued investor sentiment. This mismatch suggests that the market may not yet fully appreciate the potential tailwinds from policy changes that could further boost Bitcoin’s value.

This optimistic outlook is supported by projections from asset management firm VanEck, which anticipates a medium-term peak for Bitcoin in the first quarter of 2025, with expectations of even higher prices by the fourth quarter of the same year. This prediction aligns with the current analysis that Bitcoin could be on the cusp of another major price surge, driven by both market conditions and policy environments.

As Bitcoin navigates this volatile yet potentially rewarding period, the air does indeed seem “thin” for bears, with the market signaling that the time for significant price dips may be running out. The convergence of political, economic, and market sentiment factors creates a scenario where Bitcoin’s trajectory towards new highs appears increasingly plausible, challenging those betting against its rise to reconsider their positions.

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