Will there be a Bitcoin crash?

Bitcoin investors are increasingly thinking that a rapid crash is possible. With stock markets falling in anticipation of major economic data from the US and a global trade war looming, major investors are increasingly cautious.

The options market, where investors buy contracts to bet on or protect themselves against future price movements, shows that crypto traders (as well as investors in technology stocks) are increasingly positioning themselves very defensively.

Meanwhile, the US government is trying to convince everyone that the worst of the selloff is already over.

Bitcoin history

Looking at the historical chart of Bitcoin, we have to ask ourselves at this point whether we are starting to see a repeat of the 2017-2018 boom and bust, or whether we are just in the middle of the 2020-2022 cycle.

6. The stock market was overvalued which actual investors know. After this 8% crash PE is still 23 (over valued) when the average is 15 (fair value).

7. Bitcoin crashed ever cycle even after the entire economy is bloated by money. It crashed by as much as 75% 2021 to 2023. pic.twitter.com/nIHgFc5NWz

— Viktor Ze Husky (@Viktor_Ze_Husky) March 12, 2025

In the first case, the continuation of this chart would mean that we could fall back to as low as $50,000, in the second case we would look for support around $70,000 after which we would trade sideways for a few months before looking up again.

Fed

Regardless, the defensive tone in Bitcoin trading reflects the broader and increasingly negative market sentiment. The Federal Reserve will have to be extremely careful in considering the timing of its next rate cut cycle in order not to cause panic.