Analysis: "BTC may fall along with the US stock market, then rebound quickly"

The current cryptocurrency market is very similar to 2020, and an analysis suggests that Bitcoin could quickly rebound after falling in line with the U.S. stock market. Coinshares analyst Christopher Bendiksen explained, "Bitcoin tends to be more volatile in the early stages of market turbulence because it is a highly liquid asset. However, it stabilizes quickly once the situation settles. This phenomenon has been observed multiple times in the past, but never as prominently as during the COVID-19 pandemic. Bitcoin dropped over 50% at the time but recovered everything within just a few weeks. Subsequently, as central banks began printing money en masse, a bull market started, and Bitcoin set new all-time highs in 2021. If things proceed as Donald Trump intended, his fiscal stimulus policy could lay the groundwork for a full-fledged bull market." He further added, "After the Fed's pivot in 2022, Bitcoin has tended to follow global M2 (broad money supply) movements with approximately a 90-day lag. If this phenomenon repeats, an explosive rebound could be expected. If a low-interest and quantitative easing environment is provided, the cryptocurrency bull market may not have truly begun yet. Conversely, if my prediction is wrong, the market might have already entered a bearish reversal phase. Significant additional declines could occur until demand and price find balance, and BTC price could drop to $60,000 or even lower," he emphasized.