Analysts Forecast Bitcoin Drawdowns Not Exceeding 30%
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Market Volatility Impact: Analysts indicate that Bitcoin may face drawdowns of 20-30% due to macroeconomic factors and liquidity trends, reflecting the high volatility of the market while emphasizing a structurally bullish outlook in the long term.
- Liquidity Factors: Financial experts like Arthur Hayes and Raoul Pal stress that liquidity factors are key drivers behind potential drawdowns, suggesting that significant price volatility is part of normal market behavior despite short-term fluctuations.
- Impact on Crypto Market: The anticipated drawdowns in Bitcoin could impact the broader crypto industry, potentially leading to increased volatility in smaller cryptocurrencies and related assets, which may result in more significant percentage declines.
- Long-Term Bullish Outlook: Despite facing short-term market corrections, on-chain metrics continue to support a structurally bullish outlook, with analysts believing that these drawdowns are crucial for setting up the next leg higher in a long-term bull market.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
