How low Bitcoin would drop after hitting $100K was hard to say, but the current trends meant that the drop may not be as steep as in previous cycles. I would say that $30k would be the lowest it can fall. While sharp corrections have always occurred with Bitcoin, this time around, there may be some cushioning to fall, given the maturing market and increased investor confidence. It simply means there could be a possibility for a dip after $100K, but it may not crash like before, assuming major players are holding their positions.
Large corrections are typically part of bitcoin's price cycles, but impending bear markets may be less extreme according to some analysts, with institutional interest on the rise and Bitcoin ETFs gathering steam.
Looking at previous cycles after the bull season ends and the bear season begins, bitcoin typically dumps 70%-85% of its value from its ATH. But I also think that with the approval of ETFs and the participation of traditional institutional investors, I think the correction of bitcoin will be significantly reduced. It's hard to give a specific number because we don't know what bitcoin's highest ATH was in this cycle but I think the maximum drop of this cycle is 30%-50%.
I believe bitcoin will move like the stock market and will be more stable. We will no longer see the massive bitcoin dumping like before and this may make some people regret it but also others enjoy it.
The huge volatility is one of the things that makes bitcoin so interesting, it would be sad if that volatility went away.
If that's the case, it will affect to the mooning as well. Only thing that troubles me, is that we are focusing on the worth of bitcoin, and not the actual tech. And with we seem to be happily sacrifice the core fundamentals for altar of greed. We want our leaders and influencers to adapt it so much that we now rely on them, and fear rejection because it affects the price. And we want our institutional investors, so we happily jump trough any regulatory loop, and there's now just too much money involved not to fight regulations. We are under a microscope and more the value rises, more under a thumb we will be.
If doesn't even matter who is president or who is in charge, unless we have a dictator in charge, because bitcoin would crumble under a dictatorship if we have put all the power in their hands before that.
It's about fighting corruption vs not fighting corruption. And regulations are the only way to go when fighting it.
Before there wasn't as much money involved, corruption wasn't really a problem. People just mainly used cash money, and all the money laundering focus was on cash. No one even thought that this would become as big, that governments would get involved, so there wasn't a plan for the fact that people would artificially centralize the whole thing around the value and because of that, also around the governmental oversight. And hell with the fundamentals.
At some point, fundamentals of it could be mostly lost, and some people will point out that emperor has no clothes, and it's hard for me to even think what happens then. Will people just trust the value because they don't completely understand what happened? It's a tool against repressive dictatorships to move value without banks involved, but what if USA for example becomes to that dictatorship? We have a presidental candinate that admires dictators and say how smart they are.
Now most of the value at this point is based on the governmental acceptance of bitcoin and because of that, we have institutional investors. And if country like USA would reject it, because trump's enemies use it, and he wants to have his own coin or something silly like that, imagine what happens then. Bitcoin is a democracy in action, it's users accepting the right chain, trump doesn't believe, or understand democracy. This will become a problem under his rule.