Bitcoin's Recent Pullback from Its January Peak

Bitcoin's recent pullback from its January peak is a typical cycle correction, not a sign of the bull run's end, according to crypto analysts.

Bitcoin’s recent pullback from its January peak is a typical cycle correction, not a sign of the bull run’s end, according to crypto analysts.

Ben Simpson, CEO of Collective Shift, expressed this view, adding that the cycle peak has been delayed due to macro conditions and tightening liquidity.

“I don’t think the bull run is over. We’re just seeing a cycle peak that got delayed due to some macro conditions and also some tightening liquidity,” Simpson explained.

As Trump imposed tariffs, leading to macroeconomic uncertainties, and the US adjusted its interest rate policy, crypto traders and analysts began discussing a potential shift in the Bitcoin (BTC) cycle narrative.

After attaining an all-time high (ATH) of $109,000 in January, Bitcoin has since dropped by 24%, currently trading at around $82,824.

This correction has been attributed to several factors, including macroeconomic developments and the crypto market’s rapid ascent during the previous year.

During the last bull run, Bitcoin experienced 12 deep 25% pullbacks, but this cycle has seen only three to four such corrections, explained Nick Forster, founder of Derive.

“It’s still early days for Bitcoin, and we’re likely to see it hit new highs after this correction,” said Forster, adding that this scenario aligns with previous cycles.

However, CryptoQuant CEO Ki Young Ju recently claimed the bull cycle has ended, a view that might be premature, according to analysts like Charles Edwards of Capriole Investments. Edwards assigns a 50:50 probability to the cycle continuing or ending.

“We could quickly get a scenario where the Fed begins to ease monetary policy in the second half of the year, leading to a rapid increase in the price of Bitcoin again,” Edwards noted.

The next major narrative for Bitcoin could revolve around US rate cuts and increasing global liquidity. If the Federal Reserve halts quantitative tightening and injects liquidity, Bitcoin’s upward trajectory may resume sooner than expected.

For now, investors are watching key macroeconomic signals, with Bitcoin poised for its next move in the coming months.