Bitcoin’s Potential 70% Drawdown in Next Bear Market: Analysis and Implications
- Analyst predicts possible Bitcoin drawdown by 70% next cycle.
- Historical cycles suggest potential drop in Bitcoin value.
- Market maturity trends point to varying price outcomes.
Crypto analyst Benjamin Cowen predicts a potential 70% Bitcoin drawdown in the next bear market, citing historical post-halving trends.
This projection highlights market volatility risks, affecting investor strategies and potentially reshaping institutional involvement amid ongoing regulatory and macroeconomic uncertainties.
Benjamin Cowen, founder of Into The Cryptoverse, is a known figure for his analysis of macro trends. He suggests that a drawdown similar to past cycles might occur but emphasizes that it is not guaranteed. Market sentiment remains varied on this outlook.
Implications for Bitcoin and Crypto Markets
If Cowen’s prediction comes true, there could be a substantial impact on BTC holders and crypto markets. Institutional investors might pull back further, affecting liquidity due to prevailing uncertainty in regulatory and macroeconomic spheres. Twitter post about Bitcoin market insights
Market Volatility Concerns
The projected drawdown raises concerns of heightened volatility in the broader crypto markets. Ethereum and other altcoins may see increased fluctuations, linked partly to delays in ETF approvals and evolving market dynamics.
Historical Patterns and Strategic Responses
It’s reported that active Bitcoin addresses saw a decline in early 2025, reflecting cautious investor behavior. Historical patterns, like the 77% drop in 2018, underline the potential for a similar downturn, requiring strategic market adjustments by investors.
“I would say maybe a 70% drawdown from whatever the all-time high ends up…Does it have to happen? No, but you know, history would at least caution us to at least believe that it might.” — Benjamin Cowen, Founder, Into The Cryptoverse
Potential outcomes include financial impacts like a decrease in value and liquidity shifts across the crypto ecosystem. Insights from on-chain data highlight decreased activity levels and portfolio rebalancing as individuals adapt to possible prolonged volatility.
