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Bitcoin: A 70% Crash in the Next Bear Market? What History Tells Us (2025 Update)

Bitcoin: A 70% Crash in the Next Bear Market? What History Tells Us (2025 Update)

Published:
2025-09-21 17:03:01
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As bitcoin flirts with new all-time highs in 2025, analysts are divided: Could a 70% crash follow the next peak? Historical patterns suggest deep corrections are typical, but this cycle’s institutional adoption and liquidity might soften the blow. We break down the bull vs. bear arguments, ETH’s late-cycle role, and how to navigate volatility—without the hopium.

Bitcoin’s Bear Market Blues: Why a 70% Drop Isn’t Far-Fetched

Bitcoin’s previous bear markets saw drawdowns of 94% (2014), 87% (2018), and 77% (2022). Analyst Benjamin Cowen notes that even a "milder" 70% correction from a potential $250K peak WOULD still leave BTC at $75K—higher than 2021’s cycle top. "History favors the cautious," says the BTCC research team, citing TradingView data showing compressed volatility often precedes steep reversals.

Euphoria vs. Risk Management: The $250K Dream vs. Reality

Arthur Hayes’ bullish $250K prediction by EOY 2025 contrasts sharply with Cowen’s warning. If BTC hits that target, a 70% crash would ironically land it NEAR current levels. But as Michael Saylor tweeted in August 2025: "Winter isn’t coming back"—pointing to institutional inflows (CoinMarketCap recorded $12B in spot ETF inflows this year). Still, even gold saw 40% drops in bull markets.

Cycle Endgame: The Ticking Clock for BTC’s Top

Late-cycle dynamics are tricky. In Q4 2025, watch for:

  1. "Distribution phases" lasting weeks (like December 2021)
  2. Altcoin outperformance masking BTC weakness
  3. Liquidity shifts—DeFi TVL spiked 30% before March 2020’s crash
Pro tip: Trim positions at extensions but keep a Core holding.

Ethereum’s Late-Case Surge: A Bear Market Canary?

ETH/BTC tends to rally pre-crash (up 80% in Q4 2017, 60% in Q4 2021). If dominance flips in late 2025, it could signal final rotation before the drop. "Beta assets bleed first," notes a BTCC analyst. Case in point: SOL fell 85% in 2022 vs. BTC’s 77%.

FAQ: Your Bitcoin Bear Market Survival Guide

How likely is a 70% Bitcoin crash?

Historically, >80% of cycles saw >70% drops. But 2025’s institutional buffer (ETFs hold 4% of supply) may reduce severity.

When could the next bear market start?

Past peaks occurred 12-18 months post-halving (April 2024). Late 2025 fits the pattern.

Should I sell before a potential crash?

This article does not constitute investment advice. Consider dollar-cost averaging and keeping 10% cash for dips.

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