Will There Be a $1.8 Trillion Panic in Bitcoin? A Famous CEO Cited a Specific Level and Urged People to Be Prepared

While the recent sideways trend in the Bitcoin market continues, the sharp rise in global bond yields has become the focus of cryptocurrency investors. Sean Farrell, Head of Digital Asset Strategy at Fundstrat, stated that current volatility in Bitcoin is historically quite low and that much sharper price movements could be seen in the coming months.

According to Farrell’s assessment, price movements have accelerated significantly in the past following periods of similarly tight Bitcoin volatility. Historical data shows that the median absolute price movement of Bitcoin in the 60-day periods following such conditions was approximately 30 percent.

One of the main sources of concern in the markets has been the rapid rise in global bond yields. The yield on the US 30-year Treasury bond reached its highest level since 2002, while the 20-year yield hit its highest level since 2006 and the 10-year yield reached its highest level since 2007.

Farrell believes that the widening US budget deficit, high investment spending on AI infrastructure, high oil prices, and uncertainties regarding monetary policy are putting upward pressure on long-term bond yields.

The sharp movements in the bond market have also sparked discussions about a “panic” scenario in the global financial system involving approximately $1.8 trillion. According to analysts, such a risk-aversion wave could lead to much larger price movements in highly volatile assets like Bitcoin.

Yardeni Research stated that while there is no real panic in the markets yet, it is being closely watched whether bond investors, known as “bond custodians,” will once again determine the direction of the markets.

Bitunix analysts noted that investors’ focus is shifting away from simply whether the Fed will cut interest rates. According to the analysts, long-term US Treasury yields, energy prices, inflation risks, and the global risk premium are becoming increasingly important in pricing risky assets, including Bitcoin.

Koinly CEO Robin Singh also stated that the possibility of another sharp decline in Bitcoin in the coming months should not be ignored. According to Singh, in a negative market scenario, Bitcoin could fall to the mid-$50,000 level.

Singh stated that if historical market cycles repeat themselves, investors may need to go through one final wave of “panic selling” before it can be definitively said that Bitcoin has bottomed out of the current cycle.

*This is not investment advice.