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Bitcoin can grow by 80% after the collapse of the crypto market
Despite the decline in the value of bitcoin BTC $96,684.23 Bitcoin -1.72% Market capitalization $1.92 trillion VOL. 24 hours $2.12 billion after the inauguration of Donald Trump, some analysts believe that the current situation is not the end of the bull cycle, but only a temporary correction. In particular, Chris Berniske, former head of Ark Invest and now a partner at Placeholder, sees the market’s decline as similar to the events of 2021. At that time, the BTC rate initially collapsed by 50−80%, after which it resumed growth in the second half of the year.
This hypothesis can be confirmed by the Short-Term Holder (STH) MVRV indicator, which shows the state of the market from the point of view of short-term bitcoin holders. According to CryptoQuant, the value of this indicator has dropped from 1.35 to a neutral level, indicating that some traders are leaving the market. Analyst Axel Adler notes that such a drop usually means the end of a local overheated phase of the market.
Another critical level for bitcoin is now $ 96,000, the average price of the asset at which it has been bought by short-term investors over the past 1−3 months. Historically, this level has played the role of both support and resistance. A breakdown can cause panic among speculators and lead to further sales, while holding this level can support an uptrend.
Recent days show that after a sharp drop to $ 91,000 on February 3, bitcoin is trying to stay above $ 96,000. At the same time, activity on the BTC network has fallen to a yearly low, which may indicate that it is temporarily overvalued. If this situation persists, bitcoin will either consolidate at the current level or decline even further, opening up new buying opportunities.
As a reminder, the cryptocurrency market suffered the largest liquidation in history after a sharp drop in prices on February 3, 2025. This happened against the backdrop of Donald Trump’s announcement of aggressive duties on imports from Canada, Mexico, and China.