Investors prepare themselves amid warnings that Bitcoin could experience a 70% decline

An analyst has recently predicted that Bitcoin might experience a 70% price drop in the event of the next bear market. This cautionary outlook comes as the broader market faces a correction, with

already falling 28% from its January 2025 high of $109,350 to $78,000 by the end of February 2025. Technical signals, such as the 200-day moving average and the Relative Strength Index (RSI), point to ongoing bearish momentum, with the RSI slumping to 20—a level that reflects deep pessimism among market participants. Such steep declines are consistent with patterns seen in previous cryptocurrency bear markets.

This downturn is being driven by a combination of macroeconomic shifts, regulatory headwinds, and changes in investor behavior. Delays from the U.S. Securities and Exchange Commission (SEC) in approving

Options ETFs during the first quarter of 2025 have intensified selling pressure. Simultaneously, global political frictions, including trade disputes led by the Trump administration with major partners like China and the EU, have heightened uncertainty. The release of the divisive TRUMP meme coin has further undermined confidence in the market, adding to the overall instability. As a result, these external challenges have deepened negative sentiment, causing institutional investors to become more cautious and reducing overall market liquidity.

Sentiment among traders has dropped significantly, as demonstrated by the Fear & Greed Index’s plunge to 20 in February 2025, signaling widespread concern. This negative atmosphere is reinforcing itself, with pessimistic news prompting more selling. On-chain statistics reinforce the downturn: the number of active Bitcoin addresses fell from nearly 1.4 million to 1.1 million between January and February, while the network’s hash rate also decreased as miners sold off assets to fund operations. Together, these figures highlight a market under pressure, prompting both retail and institutional investors to reconsider their positions.

Historically, crypto bear markets last about 10 months on average, though some downturns—such as the 21-month decline from 2021 to 2022—have persisted longer. The current bear phase is now in its third month, and persistent macroeconomic and regulatory uncertainties may prolong its duration. The Federal Reserve’s main interest rate remains between 4.25% and 4.5%, and any positive effects from potential rate cuts may not be felt in the crypto sector for some time. Ongoing geopolitical strife, including escalating trade issues between the U.S. and EU, also threatens to extend the bearish trend.

Given these conditions, experts recommend that investors employ disciplined approaches. Managing position sizes is crucial, with guidelines suggesting limiting any single asset to 2%–5% of a total portfolio to reduce potential losses. Using stop-loss orders can help avoid impulsive reactions during steep drops. Spreading investments across both conventional and digital assets can provide some protection from crypto’s volatility. For those with a long-term perspective, downturns may present opportunities to acquire Bitcoin at more favorable prices, though it remains essential to practice patience and manage risks carefully during this period.

The prospect of a 70% price correction highlights the need for prudent action. Although history shows that recoveries do occur, the current bear market involves a complex set of influences that make it difficult to forecast when a rebound might happen. As Bitcoin continues to challenge important support areas, volatility is expected to persist until a clearer direction is established. Investors are encouraged to stay vigilant, keep an eye on vital market signals, and be ready for further declines before the next major upward trend begins.