Wall Street experts are waiting for a bull after decreases in Bitcoin? Here are their views

According to analysts, Bitcoin Investors may see a return in the second quarter of 2025 if the BTC maintains their historical correlation. Although it makes a harsh start to the year, Wall Street optimizes a possible rise after the decline in March.

Bitcoin (BTC) has declined by 14 %since the beginning of the year, and in January it remained approximately 26 %below the highest level of all time. The crypto currency market faced fluctuating due to President Donald Trump’s customs duty threats that uneasy wider financial markets. However, this week, the BTC followed a fixed course of around 80,000 dollars, and it created question marks as to whether it was a purchase opportunity or a harbinger of more.

Analysts point to two basic indicators that can give a recovery signal in Bitcoin: Positive correlation with global money supply growth (M2) and reverse correlation with the US Dollar Index (DXY).

“Bitcoin constantly followed the reverse Dxy with a delay of about 10 weeks, Christ said Christopher Harvey, a stock analyst at Wells Fargo. He argued that the last decline was a delayed response to the strong dollar environment in the 4th quarter of 2024. However, since DXY has peaked on January 13th and has been weakened since then, this can create a more favorable environment for Bitcoin.

Ed Engel, an analyst at Compass Point, reiterated this idea, emphasizing the role of global liquidity. In a note published on Monday, the obstacle said, “Global M2 has led to Historically for three months of BTC prices, and he added:“ Since the global liquidity has dipped in the beginning of 2025 and began to recover, we can see more weakness in March before a significant rise in the second quarter. ”

Despite the struggles in the crypto market, the sector is experiencing an increasingly favorable political environment. The current US Congress largely supports the crypto and made important promises to promote an industrial -friendly regulatory environment. However, clear regulatory instructions for crypto businesses are still difficult and create uncertainty for investors.

Meanwhile, global economic concerns continue to affect the market. The ongoing trade war and its effects on stocks created a heavy pressure on investor sensitivity despite positive inflation data.

Wolfe Research analysts continue to be cautious about a short -term breakage. “We see significant breaks at the basic support levels,” he said in a report: “This is not the action of a group that is prepared to make rally. Instead, we are afraid of the transition to a period of constant weakness. ”

According to Wolfe Research, it may provide a short -term relief to exceed the range of $ 91,000 to $ 92,000, because the threshold of $ 90,000 had a critical support level for Bitcoin in 2025. However, the firm continues to be skeptical of constant recovery and argues that any upward movement can be covered by sales pressure.

*It is not an investment advice.