title: Bitcoin Faces Deeper Drop Before Potential Rebound, Analyst Warns

n has slipped to its lowest point since last November, sparking concern among traders about the potential for more losses ahead.

Bitcoin price slipped to its lowest point since last November, sparking concern among traders about the potential for further losses.

However, there’s a view that a rebound might not be far off—particularly if the cryptocurrency continues to track the broader trends seen in the U.S. equity markets.

Christopher Bendiksen from CoinShares drew a parallel between Bitcoin’s current behavior and its dramatic movement during the 2020 COVID-19 crash. Back then, the digital asset plunged over 50%, only to stage a swift and powerful recovery as governments pumped liquidity into the economy.

Bendiksen suggests that we could be witnessing a similar setup. He pointed out that Bitcoin’s price often trails changes in global M2 money supply by about three months. Based on this, there may still be room for a further dip—possibly down to $60,000 or lower—before the market finds solid footing.

He also highlighted that Bitcoin’s extreme liquidity tends to make it more reactive during the early stages of economic shocks. However, it has historically stabilized quickly once the broader market adjusts, as was the case in 2020. That recovery, he notes, was largely fueled by aggressive central bank policies and fiscal stimulus, which ultimately helped Bitcoin reach new record highs the following year.

Looking ahead, Bendiksen believes that similar catalysts—such as potential monetary easing by the Federal Reserve and expansionary policies from a Trump-led administration—could again ignite a strong upward trend. But he cautioned that if those supportive conditions fail to materialize, the crypto market could be facing a prolonged downturn, with further losses needed before supply and demand reach equilibrium.