(MENAFN- Crypto Breaking) Bitcoin faces potential affirmation of its all-time high of $125,100 in the upcoming week, but experts warn that it might be preceded by a significant correction. Market veteran Peter Brandt suggests that either a major shakeout will occur, leading to a quick retest of previous highs, or the market could break below its current trajectory, possibly declining to the $50,000–$60,000 range. Traders are advised to consider long-term risks amid recent heightened volatility.

• Bitcoin could rapidly revisit its historic peak of $125,100 within the next week, but a major correction may occur beforehand.
• Market volatility intensified after US-China trade tensions prompted a sharp sell-off, liquidating over $19 billion in crypto assets.
• Despite recent declines, some analysts remain optimistic, citing macroeconomic factors such as easing monetary policy and inflation trends.
• Industry leaders advocate for strategic positioning, with some urging to“buy everything” amid signs that quantitative tightening is ending.
• Broader economic signals suggest a potentially favorable quarter for Bitcoin, especially with easing inflation and supportive Fed policies.

Market Outlook and Analysis

Bitcoin's price is at a critical juncture, with expectations of a possible return to its all-time high of $125,100 in the near future. Veteran trader Peter Brandt warns that such bullish momentum may be preceded by a significant market shakeout, which could quickly propel Bitcoin back to record levels, or alternatively, lead to a more bearish correction - potentially dropping to as low as $50,000 to $60,000. Historically, violations of the parabolic rise have resulted in drastic declines of around 75%, though some experts believe the days of such steep drops are over.

Recent Market Turmoil

Last week, the cryptocurrency market experienced a sharp decline following US President Donald Trump 's announcement of a 100% tariff on Chinese imports, which triggered over $19 billion in liquidations across the crypto landscape. Bitcoin fell from approximately $121,000 to a low of $102,000 on Friday, but has since recovered to around $112,400, according to CoinMarketCap data.

Charles Edwards, founder of Capriole Investments, highlighted that weekend volatility underscores the importance of managing leverage carefully.“Even multiples above 1.5x are risky,” he warned. Edwards emphasized the importance of long-term risk assessment, viewing recent fluctuations as temporary, with an optimistic outlook for the weeks ahead.

Bitcoin has declined by 7.51% over the past seven days. Source: CoinMarketCap Optimistic Signs and Institutional Sentiment

Some industry insiders remain positive, citing macroeconomic tailwinds as supportive for crypto markets. Arthur Hayes, co-founder of BitMEX , urged investors to seize the moment, stating on X that recent signals from Federal Reserve Chair Jerome Powell - indicating that quantitative tightening may be ending - create a buying opportunity.“Back up the truck and buy everything,” Hayes advised.

Experts like Pav Hundal of Swyftx point to deteriorating US inflation data and a weakening labor market as indicators that further rate cuts could fuel a Bitcoin rally.“This is a Goldilocks zone for Bitcoin,” he explained, referencing the delicate balance of current economic factors favoring crypto adoption and investment.

Economist Lyn Alden also expressed a cautiously optimistic outlook, suggesting that the upcoming quarter might prove conducive for Bitcoin's growth. As regulatory clarity and macroeconomic conditions evolve, the overall sentiment indicates that both institutional and retail investors are positioning for a potential rally in the cryptocurrency markets.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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