Expect deeper price drawdowns as Bitcoin’s ‘maturing phase’ continues, says analyst

Core Viewpoint - The recent price drawdown in Bitcoin is viewed as a sign of market maturation rather than the end of the cycle, with expectations of increased volatility as Bitcoin transitions to a more established market [1][2]. Market Conditions - Bitcoin's correction is seen as excessive rather than structural, with the macro environment remaining supportive despite the current volatility [2][3]. - The number of Bitcoin addresses accumulating the asset has nearly doubled since October, while exchange reserves have reached new lows, indicating improving on-chain fundamentals [3]. Price Movements - Bitcoin has fallen over 20% from its October highs, erasing nearly all year-to-date gains, which has negatively impacted the broader crypto market [4]. - The selloff has been exacerbated by macro shocks, market structure stress, and liquidity pressure [4]. Future Predictions - Analysts have differing views on Bitcoin's future price, with some predicting a potential drop to $50,000 by 2026, while others maintain a bullish outlook with targets of $150,000 to $200,000 [5][6]. Negative Catalysts - Recent negative catalysts contributing to Bitcoin's decline include the escalation of the US-China trade war, a prolonged US government shutdown, and stronger-than-expected labor data affecting Federal Reserve rate cut prospects [7]. - A historic liquidation cascade due to excessive leverage has resulted in over $19 billion in wiped-out positions, further impacting market stability [8].