- Bitcoin’s price has plunged over 12% from its March peak, sparking concerns of a repeat of 2017’s downturn.
- Analysts note Bitcoin’s historical boom-and-bust cycle, with institutional backing possibly easing the impact of further declines.
After reaching $94,250 on March 3rd, Bitcoin is now over 12% down to its current level of $82,781. Only one week later the price dropped to $76,000, the lowest mark in March so far. Market capitalization has also declined 11.50% in the last week. Now analysts and crypto traders are concerned about Bitcoin’s next move — resembling with 2017 decline.
The broader financial markets have also played a role in Bitcoin’s instability. A sharp 450-point decline in the U.S. stock market on Tuesday raised concerns that the crypto sector could feel the aftershocks. Historically, Bitcoin has moved in tandem with risk assets, making traders cautious about their next steps.
Bitcoin’s Cyclical Crash—A Repeat of 2017?
Crypto firm Abra’s CEO, Bill Barhydt, sees echoes of 2017 in the recent plunge. That year, Bitcoin fell 25% before recovering within months. He believes that another 25% drop could be on the horizon but assures investors that it’s part of Bitcoin’s natural market cycles.
Ya’ll never change.
Bitcoin is now experiencing its 11th 25%+ correction in ten years and every time everyone reacts like the sky is falling and every time everyone screams that it’s different this time.
This pullback looks, smells and feels 100% just like 2017 to me. Rising…
— Bill Barhydt (@billbarX) March 10, 2025
Bitcoin now faces its 11th correction exceeding 25% in the past decade, yet reactions remain consistently alarmist. Each time, concerns arise about unprecedented circumstances, but historical trends suggest otherwise. Barhydt emphasizes that Bitcoin has repeatedly recovered from steep declines, often emerging stronger.
If Bitcoin does take another 25% hit, its price could sink to around $60,750. However, this time, institutional investors hold massive positions through ETFs, giving Bitcoin a stronger safety net than in past downturns. That institutional backing could provide the fuel for a quicker recovery.
Bitcoin’s Boom-and-Bust Cycle Remains Intact
Looking at Bitcoin’s price history, one thing stands out: cycles repeat, but they don’t always follow an exact script. The 2021 market showed how external factors, such as political and economic shifts, can disrupt expected patterns. Some analysts argue that Bitcoin’s role as a “flight-to-safety” asset could provide a buffer if economic turmoil worsens.
Others take a pragmatic stance. A veteran investor dismissed speculative optimism, emphasizing that holding onto assets without strategy carries risk. The experience of 2021—when Bitcoin surged after geopolitical tensions, only to fall back to its predictable lows—serves as a cautionary tale.
Bitcoin’s halving cycle remains one of the most influential factors in its price movements. Historically, when new Bitcoin issuance is cut in half, prices tend to double in the following months. That supply-driven surge often leads to a sharp correction afterward, creating a boom-and-bust cycle that repeats roughly every four years.
