According to a report released on Tuesday, 10X Research anticipates that Bitcoin may decline further, potentially reaching $73,000, which highlights the ongoing bearish sentiment in the cryptocurrency market.
The research firm pointed out “notable similarities between the conclusion of the previous crypto bull market and the present situation,” such as the hawkish stance of the U.S. central bank, various macroeconomic uncertainties, and the decline of crucial cryptocurrency narratives.
10X noted, “Currently, we are experiencing comparable macro challenges, microstructural inefficiencies, and pricing trends that suggest a familiar cycle is repeating as retail investors are beginning to withdraw,” emphasizing the downturn of the meme coin chaos that previously boosted crypto markets and propelled Bitcoin past $108,000 in January.
This report from 10X comes at a time when investors are distancing themselves from cryptocurrencies and other high-risk assets due to escalating fears surrounding a potential trade conflict arising from the Trump Administration’s tariffs on key partners, along with concerns about recession and global disputes in Eastern Europe and the Middle East.
The decline of the previously booming meme coin market has further eroded confidence in digital currencies. Other analysts, including Arthur Hayes, co-founder of the BitMEX exchange, have also predicted that Bitcoin could eventually slide towards $70,000.
On Tuesday, Bitcoin recovered to over $83,000; however, it is still down approximately 14% for the month and significantly below its all-time high of nearly $109,000, which was achieved in early January amid optimism surrounding anticipated crypto-friendly policies from the new Trump administration.
Dogecoin, the leading meme coin with a market capitalization of $24 billion, has seen a decline of more than 33% over the past month, with other tokens in this category experiencing even greater losses.
10X remarked, “Speculative fervor can temporarily counter broader market trends before eventually facing reality.” Furthermore, they stated, “Although this market cycle may have reached its peak when the Federal Reserve adopted a hawkish approach in mid-December, the meme coin frenzy persisted, fueled by retail speculation. As retail investors realized they were merely providing exit liquidity in a rigged system, the market’s upward trajectory likely transformed into a downward spiral.”
In a report from December when Bitcoin dipped briefly to around $95,000, 10X had cautioned about the Federal Reserve’s increasingly restrictive monetary policies and other market circumstances that were “also becoming less conducive.”
In this latest analysis, 10X stated, “If past trends hold true, the next significant upward movement will necessitate a fresh narrative.”
“Numerous retail investors currently possess portfolios heavily laden with meme coins, most of which are destined for a gradual decline towards zero, paralleling the broader market’s downturn under the so-called crypto president, TRUMP.”
Edited by Andrew Hayward
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