Bitcoin may drop to $65K but analysts see long-term growth

Bitcoin (CRYPTO:BTC) fell 7% from $88,060 on March 26 to $82,036 on March 29, triggering $158 million in long liquidations. 

At the same time, gold surged to a record high of $3,087, raising concerns about Bitcoin’s status as “digital gold.”  

Despite the decline, analysts believe Bitcoin could benefit from expected central bank liquidity measures.  

According to Mihaimihale, an X user, tax cuts and lower interest rates are needed to "kickstart" the economy after last year’s government-driven growth.  

The U.S. dollar weakened against foreign currencies, with the DXY Index dropping from 107.40 to 104.  

Spot Bitcoin ETFs also saw $93 million in net outflows on March 28, signaling cautious investor sentiment.  

The CME FedWatch tool indicates a 50% probability of interest rate cuts to 4% or lower by July 30, up from 46% a month earlier.  

Alexandre Vasarhelyi, founding partner at B2V Crypto, described the crypto market as being in a “withdrawal phase.”  

He emphasised that recent developments, such as the U.S. Bitcoin reserve order, highlight the industry's long-term adoption potential.  

“Whether Bitcoin’s floor is $77,000 or $65,000 matters little; the story is early-stage growth,” Vasarhelyi said.  

Warren Pies, founder of 3F Research, expects the U.S. administration to ease tariffs, which could stabilise market sentiment.  

He also noted that a 10% stock market correction is not unusual and that reduced policy uncertainty could prevent a broader downturn.  

While Bitcoin's performance has sparked debate about its “digital gold” narrative, analysts argue that its price movements reflect early-stage adoption rather than a fundamental failure.  

They expect central bank policies and macroeconomic shifts to create a favorable environment for Bitcoin’s long-term growth.

At the time of reporting, the Bitcoin price was $82,449.72.