Bitcoin Plummets to Nearly Three-Month Low, But Analysts Remain Bullish on Its Future!

TradingKey – The market is once again shaken by negative news, causing Bitcoin to drop to around $82,000. However, analysts remain bullish on Bitcoin.

On Thursday, Bitcoin experienced another significant decline due to unfavorable news from the US. In the past 24 hours, Bitcoin fell by over 4%, hitting a low of $82,256, marking its lowest point since November of last year.

Bitcoin Price Chart, Source: TradingView.

Last night, US lawmakers postponed the timeline for cryptocurrency legislation. Senator Cynthia Lummis mentioned during the first meeting of the Senate Banking Committee's Digital Assets Subcommittee that a bipartisan group of lawmakers supporting cryptocurrency aims to pass a comprehensive framework for the industry by the end of this year. This announcement means the timeline has been delayed by several months from the original schedule set by Republican decision-makers.

The news further exacerbated the already fragile crypto market. Recently, five states—including North Dakota, Pennsylvania, South Dakota, Wyoming, and Montana—rejected proposals for state-level Bitcoin reserves, leading to a decline in market confidence. This has raised doubts about whether former President Trump’s proposed Bitcoin strategic reserve plan can be realized, triggering a sharp drop in Bitcoin’s price. Over the past month, Bitcoin's price has consistently declined, with a total drop of over 16%.

TradingKey analyst Viga Liu believes the recent drop in Bitcoin is due to two main factors: uncertainty around the Fed’s monetary policy and Trump’s tariff plans, which have dented confidence in economic growth. Liu points out that this dip doesn’t signal a bear market—the uptrend hasn’t broken. It’s more likely a downward correction, building steam for the next leg up. This shakeout could even be healthy, clearing out overheated sentiment. Investors shouldn’t worry too much—keep an eye on how the $80,000 support level holds and wait patiently for a new narrative, whether it’s a Bitcoin reserve breakthrough, Fed rate cuts sparking liquidity, or more platforms embracing Bitcoin payments, to light up the market again.

CryptoQuant CEO Ki Young Ju believes that a 30% correction in a Bitcoin bull market is normal. He stated, “If you're panicking and selling now, you might be a novice. A 30% pullback is common in a Bitcoin bull cycle. In 2021, Bitcoin dropped by as much as 53% but still recovered to set a new all-time high.”

LMAX Group’s crypto strategist Joel Kruger shares a similar perspective. He noted, “BTC has strong support in the $70,000-$75,000 range, which could serve as an attractive higher low, laying the groundwork for the next significant surge and pushing Bitcoin to break through $110,000, setting a new historical high.”