Bitcoin’s recent price correction has caught the attention of market analysts, with some experts drawing parallels to the 2017 crash. As BTC tumbled to $76,600 before rebounding, concerns over a prolonged downtrend have surfaced. However, Bill Barhydt, CEO of crypto firm Abra, remains confident that Bitcoin will bounce back stronger than ever.

According to Barhydt, Bitcoin is going through its 11th major correction in the past decade, and each time, panic spreads across the market—only for BTC to recover and set new highs.

“This pullback looks, smells, and feels 100% just like 2017,” he wrote on X (formerly Twitter), emphasizing that liquidity expansion and policy shifts are key drivers behind the market’s volatility.

Why Is Bitcoin Dropping?

The crypto market downturn comes amid growing economic uncertainty and policy changes in the U.S. government. Barhydt suggests that financial institutions are adjusting Treasury rates to manage debt refinancing, while policymakers are working to stabilize mortgage rates and support struggling sectors like real estate and banking.

Additionally, China’s deepening economic struggles may be contributing to Bitcoin’s volatility. Barhydt argues that China needs lower U.S. interest rates to support its own economy, which could lead to increased money printing—a factor that has historically fueled asset prices, including Bitcoin.

“We’re likely going to see massive job cuts across government, tech, and housing sectors,” he predicted, adding that financial liquidity will still find its way into asset markets over the next few months.

Comparisons to the 2017 Bitcoin Crash

Bitcoin’s current price movements have drives strong comparisons to the 2017 bull run and subsequent crash. During that period, BTC surged to nearly $20,000 before plummeting to around $3,000 in 2018. The correction was largely driven by market speculation, regulatory concerns, and liquidity cycles.

However, experts note that Bitcoin is in a different position today. Unlike in 2017, institutional investors now play a much bigger role in the market, and Bitcoin has a more established presence in traditional finance, with products like spot ETFs driving demand.

Barhydt and other analysts believe that while short-term volatility is unavoidable, Bitcoin remains on a long-term growth trajectory.

Will Bitcoin Rebound?

Despite the recent pullback, many crypto analysts remain optimistic about Bitcoin’s future. Liquidity trends, central bank policies, and macroeconomic factors suggest that asset prices could continue rising in the long run.

Bitcoin has shown a strong ability to recover from corrections, and historical trends indicate that major dips often precede new all-time highs.

If liquidity remains high and institutional demand continues to grow, BTC could regain its momentum and push towards new record levels in the coming months.

For now, analysts urge investors to stay cautious but not to panic, as Bitcoin has proven time and time again that it can weather market storms and emerge stronger.

Final Thoughts

Bitcoin’s latest price drop might seem alarming, but market veterans see it as a normal correction rather than the start of a major downtrend. With liquidity expected to rise and institutional players still engaged, Bitcoin could be primed for a strong rebound—just as it has in past cycles.

While short-term volatility remains a challenge, many believe that Bitcoin’s long-term trajectory remains bullish, making this correction just another bump on the road toward higher prices.