Is Bitcoin’s Bull Market Over or Just a Correction?

Bitcoin’s price surged to a new all-time high of $108,000 earlier this week but has since fallen to around $94,500. This downturn followed comments from Federal Reserve Chair Jerome Powell, who:

1. Dismissed the Fed’s ability to purchase Bitcoin, despite Donald Trump’s pro-BTC rhetoric.
2. Warned against further interest rate cuts in 2025.

These remarks triggered speculation among the crypto community: Is this just a normal bull market correction, or is the Trump-driven rally over?

The Bearish Argument: Has the Bull Run Ended?

BTC’s rally began well before Trump’s election victory, fueled by the Federal Reserve’s pivot to a rate-cutting strategy. The first 50-basis-point reduction sparked a rapid climb in risk assets like Bitcoin.

However, the Fed’s latest 25-basis-point cut did not have the same effect. Instead, Powell’s suggestion that there may not be additional rate cuts triggered significant sell-offs, impacting:

• Bitcoin, which dropped sharply.
• The broader crypto market, which entered a downturn.

Adding to this sentiment, spot Bitcoin ETFs saw their worst day of outflows since launching nearly a year ago. This shift indicates that US investors may be adjusting their Bitcoin exposure in response to the Fed’s cautious stance.

Analysts argue that if BTC breaks below the $94,000 support zone, it could spiral further to $90,000 or even $80,000, potentially ending the current bull market.

The Bullish Argument: A Healthy Correction

On the flip side, crypto analysts like Captain Faibrik believe this pullback is merely a healthy correction in an ongoing bull market.

Faibrik emphasized the $94,000 support line as a critical threshold:

“A drop to $94K would be a healthy reset and could propel BTC higher.”

Historical patterns support this view. Bitcoin tested the $94,000 zone twice last week, bounced back strongly, and went on to hit a new all-time high just days later.

Corrections are a natural part of bull markets, often serving as a reset to cool overbought conditions and establish stronger support for the next upward move.

What’s Next for Bitcoin?

With Bitcoin hovering near the crucial $94,000 support, the next few days will be pivotal:

1. Holding above $94K: This could signal a healthy correction and set BTC up for a continuation of its bull market.
2. Breaking below $94K: A further decline could validate bearish sentiment and push BTC toward $90K or lower.

While the market remains divided, Bitcoin’s next moves will depend heavily on its ability to defend the $94,000 support zone. Whether this is a healthy correction or the end of the bull market, all eyes are on BTC’s price action in the days ahead.