Bitcoin (BTC) price is crashing, but the real movement might well come from elsewhere

While the market is absorbing a rapid decline, some analysts are already betting on another engine: the massive return of liquidity from central banks.

Bitcoin (BTC) has been making headlines for a rapid price decline, but the real movement might well come from elsewhere. While the market is absorbing a rapid decline, some analysts are already betting on another engine: the massive return of liquidity from central banks. Behind the numbers, a global monetary dynamic is forming, far more decisive than the ongoing correction. BTC is fluctuating, but the upcoming capital influx could rewrite everything.

An immediate correction and its triggers

Bitcoin experienced a significant drop between March 26 and March 29. Indeed, the queen of crypto fell from $88,060 to $82,036, representing a 7% loss over three days. This correction resulted in the elimination of $158 million in long positions, confirming an overheating of the derivatives markets and a high exposure to leverage.

This setback comes as gold, a traditional safe haven in times of turbulence, hit a historic record of $3,087, triggering a new wave of comparisons between the precious metal and Bitcoin.

As analyst Caleb Franzen points out:

Gold has experienced an uninterrupted upward trend since mid-February, while Bitcoin is now moving counter to that.

The key highlights of this correction include:

* This technical pullback, while spectacular, fits into a climate of anticipation ahead of major monetary policy announcements. It also exposes a structural fragility linked to investors’ excess confidence in the futures markets.

* The long positions on BTC, massively fueled by recent rallies, were swept away in a brutal readjustment movement.

* This correction phase, far from signaling a fundamental trend, could thus represent a differentiatial in a larger cycle still dictated by global economic policies.

The monetary leverage, potential catalyst for the next impulse

In the face of this volatility, some analysts adopt a decidedly different perspective. For them, this drop in Bitcoin might just be background noise in a broader environment where flexible monetary policies are ready to take center stage again.

Arthur Hayes, former CEO of BitMEX, particularly defends the idea that the current correction is “insignificant” compared to what he describes as an upcoming “tsunami of liquidity.” In his analysis, he claims that “it’s not the drop to $60,000 that worries me. What matters is that central banks, starting with the Fed, will restart monetary printing.”

On the platform X (formerly Twitter), analyst Mihaimihale states on March 10, 2025, that “tax cuts and lower interest rates are necessary to revive the economy.” Furthermore, he estimates that last year’s growth was primarily based on unsustainable public spending in the long term.

Alexandre Vasarhelyi concurs with this view but nuances the short-term impact of financial innovation. According to him, “whether it’s $77,000 or $65,000, it matters little: the story is one of still embryonic growth.”

The macroeconomic signals seem to strengthen this hypothesis. According to the CME FedWatch Tool, the probability that the Federal Reserve will lower its benchmark rate to 4% or less by the end of July has risen to 50%, up from just 40% the previous week.

This expectation of a rate cut is accompanied by growing pressure for monetary stimulus, as global growth shows signs of slowing down.

Moreover, political initiatives such as the U.S. executive order on the establishment of a strategic reserve of Bitcoin or the tokenization of real assets (RWA) led by major institutions like BlackRock reinforce the idea of an increasing integration of Bitcoin into long-term economic strategies.

If this scenario is confirmed, the current contraction of the crypto market could be quickly erased by a recovery driven by capital influx. Bitcoin’s ability to reposition itself as a store of value against inflation could be enhanced by this new injection of global liquidity. In the longer term, these dynamics could also stimulate institutional investors’ appetite for crypto-backed products, further consolidating Bitcoin’s place in the global financial universe.