Bitcoin faces a rough stretch ahead, according to a recently published bearish view.
Some analysts argue that shrinking global liquidity, paired with what they see as a tightening bias from the Fed, sets up a difficult backdrop for crypto over the coming months. The parallel being drawn is to late 2021 and early 2022 — a period when Bitcoin fell roughly 75% as liquidity conditions turned against risk assets.
Researchers making this case suggest a similar negative liquidity cycle is now underway, implying continued downside risk not just for Bitcoin but for crypto broadly. The core argument is simple: when the tide of global money supply recedes, speculative assets tend to be hit first and hardest.
Worth noting this is one published view, and liquidity calls have been wrong before — but the historical analogy is one crypto holders may want to keep on their radar.