Bitcoin took a sharp dive on Saturday, falling roughly 7% and landing near the $77,000 mark. The sudden drop wiped out more than $2 billion from the overall crypto market, leaving investors scratching their heads about whether the worst is behind them or still coming.
The digital currency has crept back up a bit since then, sitting at $78,690 as of publication, according to CoinMarketCap. However, it is still way down from where it was. Bitcoin topped out at $126,100 on Oct. 5, which means it’s lost about 38% from that record high.
Factors behind the weekend slide
Market observers noted that a “perfect storm” of geopolitical and macroeconomic events exacerbated the volatility. Sentiment swiftly shifted after President Donald Trump selected former Federal Reserve Governor Kevin Warsh to succeed Jerome Powell. Traders were concerned that Warsh could attempt to shrink the Fed’s balance sheet, which might limit the liquidity that has historically fueled increases in cryptocurrencies.
Additionally, risk-on assets were rocked by reports of an explosion at Iran’s Bandar Abbas port, a vital international shipping gateway. Because the port manages a significant amount of the world’s oil traffic, the ensuing uncertainty drove investors to gold and other safe-haven assets, making Bitcoin susceptible to the massive sell-off that led to widespread liquidations.
Analyst sees potential market bottom
PlanC, a Bitcoin analyst, thinks Saturday’s drop might actually be the low point for this market cycle. “Decent chance this will be the deepest pullback opportunity this Bitcoin bull run,” PlanC wrote on X Saturday. He’s seen this kind of thing before, pointing to the 2018 bear market when Bitcoin fell to $3,000, the March 2020 crash that brought it down to around $5,100, and the FTX and Luna meltdowns that sent prices to roughly $15,500 and $17,500.
“There is a decent chance we are going through another major capitulation low as we speak,” PlanC said. He figures the bottom will land somewhere between $75,000 and $80,000.
But Rajat Soni, a Bitcoin advocate and financial accountant, isn’t buying into weekend panic. “Never trust a weekend pump OR dump,” Soni posted on X Saturday. Crypto markets get pretty wild on weekends, he noted, and traders shouldn’t read too much into it. “Bitcoin will make a comeback when you least expect it,” he added.
Some predict further declines ahead
Not everyone’s convinced we’ve seen the worst of it. Peter Brandt, a veteran trader, recently predicted Bitcoin could drop to $60,000 by the third quarter of 2026. Crypto analyst Benjamin Cowen said the market cycle’s lowest point will probably show up in early October, though he “anticipates plenty of rallies will occur between now and then.”
Jurrien Timmer, Fidelity’s director of global macroeconomic research, suggested 2026 might be a “year off” for Bitcoin, with prices potentially sliding to $65,000. The split opinions show just how uncertain things are right now, leaving traders to figure out their next moves in what’s shaping up to be a bumpy ride.
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Source: https://www.cryptopolitan.com/bitcoin-plunges-7-percent/
