Bitcoin’s sharp drop below $80K has sent shockwaves across the crypto market, but some investors believe a rebound is on the horizon. Here’s what’s causing the downturn and what could spark the next rally.
The cryptocurrency market has been in turmoil over the past few weeks, with Bitcoin (BTC) falling below $77,000 before staging a slight recovery to $83,000 on March 13, 2025.
This marks Bitcoin’s lowest price in four months and has reignited fears of an extended bear cycle.
The impact has rippled across the market, with major altcoins such as Ethereum (ETH) and Solana (SOL) also suffering steep losses. However, despite the uncertainty, some analysts believe the crypto market is approaching a pivotal moment that could set the stage for a major bull run.
Before looking at what could trigger the next rally, it’s crucial to understand the three main reasons behind the current downturn.
1 – Institutional Investors Are Exiting the Market
One of the primary reasons Bitcoin and the broader crypto market are struggling is the sustained outflow of institutional capital.
Data from CoinShares shows that $876 million was pulled out of crypto funds in the week ending March 7, marking the fourth consecutive week of institutional withdrawals.
Throughout 2024, institutional investors were a stabilising force in the market, with hedge funds and asset managers increasing their exposure to Bitcoin.
However, the recent selling trend suggests that confidence among large-scale investors is fading, at least in the short term. If institutions continue to withdraw funds, the market could remain under pressure unless retail investors step in to absorb the selling volume.
2 – Economic Uncertainty Due to Trump’s Trade Policies
The second major reason for the decline is growing economic uncertainty, largely driven by Trump’s tariff policies and comments on a potential recession.
Over recent weeks, President Trump has implemented and later reversed tariffs on Canada, China and Mexico, creating instability in financial markets. These unpredictable moves have added to investor fears, as trade wars typically lead to higher inflation and lower economic growth.
Adding to the uncertainty, Trump stated in a Fox News interview that the US could experience a “period of transition”, refusing to rule out the possibility of a recession.
Markets tend to react negatively to such statements, as economic downturns generally lead to reduced risk appetite, causing capital to shift away from volatile assets like cryptocurrency. The Crypto Fear & Greed Index has now dropped to 17, reflecting extreme fear among investors.
3 – Disappointment Over the US National Crypto Reserve
Another contributing factor to the crypto market decline is the disappointment surrounding Trump’s National Crypto Reserve plan. Many in the crypto community expected the initiative to involve the US government purchasing large amounts of Bitcoin, which would have created fresh institutional demand and driven prices higher.
However, when the plan was officially revealed, it became clear that the government would not be buying additional crypto but instead would retain only the digital assets seized from illicit activities. This announcement crushed expectations and removed a key bullish catalyst that many had been counting on.
Without a surge in government-backed demand, Bitcoin’s price has struggled to find support, leading to further selling pressure.
Is a Crypto Market Rebound on the Horizon?
Despite the ongoing downturn, some analysts believe a major rally could be on the way.
A key factor to watch is M2 liquidity, which measures the amount of money circulating in the economy. Historically, increases in M2 liquidity have coincided with Bitcoin bull runs, as more available capital finds its way into risk assets.
Some experts predict that if the Federal Reserve starts cutting interest rates later this year, it could trigger a fresh wave of investments into Bitcoin and altcoins. Lower interest rates generally lead to increased borrowing and spending, which can drive up demand for speculative assets like crypto.
Another potential driver of recovery is growing retail investor activity. Despite the sell-off, on-chain data shows that smaller Bitcoin wallets are accumulating BTC at a rapid pace, suggesting that long-term holders remain optimistic about Bitcoin’s future.
BTC Bull Token: An Alternative Way to Gain Bitcoin Exposure
With the current market conditions making Bitcoin volatile, some investors are looking for alternative ways to gain exposure to BTC without directly buying it. One such project is BTC Bull Token ($BTCBULL), a meme coin that rewards holders with real Bitcoin.
CLAIM BITCOIN REWARDS BY HOLDING BTCBULL – JOIN THE PRESALE NOW
Unlike traditional meme coins, which rely purely on hype, BTCBULL is structured to deliver actual BTC to its holders whenever Bitcoin reaches key price milestones.
For example, once Bitcoin crosses $150,000, $BTCBULL holders will receive free BTC airdrops, allowing them to accumulate Bitcoin without needing to buy it outright.
BTC Bull Token’s Growth Strategy and Tokenomics
The BTC Bull Token project has been designed with long-term sustainability in mind. A major part of its strategy involves gradually reducing supply through burn events, ensuring that the token remains deflationary.
Another key aspect of BTCBULL’s strategy is its aggressive marketing plan, with 40% of the total token supply allocated for marketing and public relations. This ensures continued awareness and adoption even after launch, helping the token gain traction in the broader crypto market.
To be eligible for BTC rewards, investors need to hold BTCBULL in the Best Wallet app, which serves as the recommended storage solution for this project.
Why Investors Are Buying $BTCBULL Now
For those looking to benefit from Bitcoin’s long-term price growth without the high upfront investment, BTCBULL offers a unique opportunity. Investors are drawn to this project for two main reasons.
Firstly, BTC Bull Token provides real Bitcoin rewards, meaning holders will be able to accumulate BTC without actively trading or mining. Given that several analysts predict Bitcoin could exceed $1 million per coin in the coming years, these rewards could become highly valuable.
Secondly, BTCBULL itself is positioned for price appreciation, as its supply-reduction mechanisms and Bitcoin-based incentives drive increased demand.
With the token’s presale already raising $3.5 million, many see this as one of the most promising crypto opportunities of 2025.
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The next price increase for BTCBULL is scheduled soon, making this the final opportunity to buy at the lowest available price.
When Will the Next Bull Run Start?
Although the market is currently in a downtrend, history has shown that Bitcoin and the broader crypto market always recover from corrections. Institutional investors may be pulling back, but as liquidity improves and retail investors step in, a new bull cycle could be just around the corner.
For those looking to gain Bitcoin exposure without directly buying BTC, BTC Bull Token presents an exciting alternative – offering real Bitcoin rewards, deflationary tokenomics and strong growth potential.
The $BTCBULL presale is closing soon, making this a prime opportunity to invest before the next major rally begins.
