Bitcoin’s recent market downturn has sent shockwaves through the crypto community, dropping to a low of $76,589 before rebounding above $80,000. Despite this recovery, the leading cryptocurrency remains 27% below its all-time high of $109,900 set on January 20.

With investors questioning whether this dip is a temporary setback or the start of a prolonged decline, high-profile industry experts are drawing parallels to past market cycles—especially Bitcoin’s 2017 bull run.

Abra CEO: “This Pullback Feels Just Like 2017”

Bill Barhydt, CEO of Abra, took to social media to highlight Bitcoin’s historical tendency for sharp corrections. He noted that Bitcoin has now seen its 11th correction of 25% or more in the past decade.

“Y’all never change. Bitcoin is now experiencing its 11th 25%+ correction in ten years, and every time, everyone reacts like the sky is falling,” Barhydt wrote on X. “This pullback looks, smells, and feels 100% just like 2017 to me.”

He pointed to rising fiat liquidity as a key factor behind Bitcoin’s price action, stating that similar monetary conditions fueled asset prices in 2017. According to Barhydt, the U.S. government’s economic policies—such as lowering treasury rates to refinance debt and support banks—could drive more liquidity into Bitcoin, stocks, and real estate.

“China is in a deep recession and needs lower U.S. rates to support its own money-printing regime. And print they will,” he added, predicting that liquidity will continue to flow into risk assets like Bitcoin.

His message to investors? “Buckle up.”

Cathie Wood: A “Deflationary Boom” Is Possible

Echoing Barhydt’s sentiment, Cathie Wood, CEO of ARK Invest, believes that many investors are underestimating the impact of the final stage of a rolling recession. She suggests that this could provide policymakers with greater flexibility in economic decision-making.

“The market today is discounting the last leg of a rolling recession, which will give the Trump administration and the Powell Fed many more degrees of freedom than investors expect,” Wood wrote on X.

She predicts that the U.S. economy could enter a deflationary boom later this year, which could set the stage for Bitcoin’s next major rally.

Caution From Charles Edwards: Watch the S&P 500 and Credit Spreads

Not everyone is convinced that the worst is over. Charles Edwards, founder of Capriole Investments, is urging caution, pointing to weakness in the S&P 500 and widening credit spreads as potential warning signs.

“The S&P 500 is crashing. Is this a dip opportunity or the start of something bigger?” he questioned.

Edwards warned that a shift in institutional money from risk assets to treasuries could signal further trouble ahead for Bitcoin. He emphasized that if credit spreads continue to rise, it could mean institutional investors are pulling out of risky markets, which would be a bearish signal for crypto.

Where Is Bitcoin Headed Next?

Bitcoin’s volatile price movements have left traders divided. Some believe the current dip is a buying opportunity, similar to past corrections before major rallies. Others are watching macro trends and traditional markets for clues about Bitcoin’s next move.

With liquidity likely to remain a dominant factor, many experts agree that Bitcoin’s long-term trajectory is still bullish. However, whether this correction will mirror 2017 or take a different path remains to be seen.

For now, investors should stay alert, as macro shifts and regulatory decisions could play a crucial role in Bitcoin’s next big move.