The cryptocurrency market experienced a dramatic downturn this week, with bitcoin prices falling sharply from near $100,000 to around $90,000, wiping out $200 billion from the $3.2 trillion combined crypto market cap, Forbes reports.
However, a significant bet on bitcoin’s future market valuation—potentially reaching $15 trillion—has calmed investor concerns, helping the market regain some stability.
The sell-off followed bitcoin’s meteoric rise, which was fueled by the US presidential election results and hopes for relaxed regulatory policies under Donald Trump’s administration. Michael Novogratz, CEO of Galaxy Digital, warned that bitcoin’s price could dip as low as $80,000 before rebounding.
“There’s a ton of leverage in the system right now,” Novogratz explained.
He predicted that bitcoin will eventually surpass the $100,000 mark due to supply shortages and growing institutional adoption.
Bitcoin’s recent rally has faced resistance, particularly after reaching $99,000, leading to profit-taking and broader concerns tied to geopolitical uncertainty. Despite the current decline, Novogratz remains optimistic, stating that bitcoin is still in “price discovery” mode, with significant potential for future growth.
Dan Morehead, founder of Pantera Capital, provided a bullish forecast, predicting bitcoin could reach a price of $740,000 by 2028, resulting in a total market cap of $15 trillion. Morehead cited bitcoin’s historical growth, noting that Pantera’s bitcoin fund has yielded over 131,000% returns since its inception in 2013. He emphasized that another exponential increase is plausible given bitcoin’s unique position in the broader $500 trillion financial market.
The recent price correction did not go unnoticed by bullish traders, who rallied to stabilize the market. On Tuesday, bitcoin saw a modest recovery as it hovered around $90,000, with experts like FxPro’s Alex Kuptsikevich pointing to key support levels near $91,800. Without sufficient momentum in this range, further drops toward $87,000 remain a possibility.
Bitcoin’s volatility highlights the delicate balance between speculative trading and long-term investment. Ransomware attacks and regulatory uncertainties have previously shaken the market, yet the crypto community remains optimistic about bitcoin’s potential to achieve new milestones. Analysts suggest that the evolving geopolitical landscape and the potential easing of regulatory constraints under the Trump administration could further drive market gains.
