
Bitcoin (CRYPTO: BTC) has dropped 10% so far in January, but some analysts say that a large correction in the first month of the year is common following a halving of the blockchain.
On January 12, cryptocurrency analyst Axel (@Bitblaze) told his 123,000 X followers, "January coin dumping has been a crazy frequent event in post-halving years. Everyone knows what happened after the dumps in 2017 and 2021."
Bitcoin dropped more than 25% from over $40,000 to just over $30,000 by the end of January 2021, the most recent year following the halving. However, it had soared 130% to a new peak of $69,000 by November.
In January 2017, the year following the 2016 halving, Bitcoin experienced a 30% decline, dropping from $1,130 to $784. It then went on to increase by 2,400% that year, reaching its highest point ever — $20,000 — by December.
Meanwhile, YouTuber and crypto market analyst, Crypto Rover, highlighted that over the past 12 months, Bitcoin has been on a declining trend in the first half of the month.
According to Crypto Rover, "This is just a minor dip compared to what we have seen earlier."
On January 12, Stockmoney Lizards X, a finance analysis account, posted that Bitcoin had not yet reached the ultimate hype/pump phase. "This cycle has more fuel left in the upcoming year."
Although the analyst admitted that each cycle was a little different, he also stated that "I think it aligns our thesis with mass adoption, pro-crypto governments around the world, ETFs, etc."
Before the end of 2025, Bitcoin prices could rise from their current levels to over $200,000 with a 130% move akin to that in the previous cycle's peak year.
Conversely, a decline of the size observed in January of the previous two cycles might cause prices to fall below $70,000.