Market Downturn Triggers Liquidations
Over the past 24 hours, Bitcoin’s price fell sharply, slipping below the $95,000 mark for the first time in six months. This plunge ignited a cascade of liquidations across futures and margin markets, as leveraged longs were wiped out en masse. Volatility spiked on major exchanges, with funding rates flipping negative and short-term traders rushing to exit positions.
The sudden sell-off rattled market participants, reigniting concerns about broader macro headwinds and profit-taking after a historic rally. Exchange inflows jumped as investors offloaded coin, driving BTC into deeply oversold territory on both technical charts and key on-chain metrics.
JPMorgan Sees the Bottom in Place
Despite the sharp correction, analysts at JPMorgan believe that Bitcoin has already reached its near-term floor. In their latest research note, the bank points to several on-chain indicators supporting a bottom: realized price levels nearing long-term holder cost basis, diminishing exchange reserves, and subdued sell pressure from whale wallets.
According to the report, investor capitulation has largely played out, suggesting limited downside from current levels. JPMorgan’s team highlights that stablecoin supply remains elevated and that institutional demand—particularly from corporate treasuries and crypto funds—continues to build.
Path to a $170K Price Tag
Looking ahead, JPMorgan projects that Bitcoin could embark on a sustained recovery, targeting a price near $170,000. This forecast is anchored to the notion that Bitcoin will capture a modest share of gold’s $28.3 trillion market valuation as digital assets solidify their status as “digital gold.”
Key catalysts include the upcoming halving event, fresh inflows into spot Bitcoin ETFs, and regulatory clarity in major markets. Should BTC reclaim critical levels above $100,000 and hold those gains through quarter-end, momentum traders expect a rapid extension toward new all-time highs.
Investor Takeaways
For risk-tolerant investors, the current pullback may offer a prime entry window ahead of the next bull cycle. Strategic accumulation on dips, combined with disciplined risk management, could pave the way for outsized gains if Bitcoin reestablishes its uptrend.
More conservative participants might await confirmation of a trend reversal—such as sustained price action above the 50-day moving average—before increasing exposure. Across the board, market experts agree that Bitcoin’s long-term narrative remains intact as adoption broadens and on-chain fundamentals stay robust.