Institution: Bitcoin Still Faces Further Downside Risk, Deep Bear Market Price Could See Another 'Halving'

BlockBeats News, February 14th. According to a report to clients this month, a strategist at Ned Davis Research stated that despite experiencing significant sell-offs in recent months, Bitcoin still faces further downside risk.

Ned Davis Research's Chief Global Strategist, Pat Tschosik, and analyst Philippe Mouls pointed out that based on an analysis of Bitcoin's previous downtrend cycles, if the current bear market evolves into a full-fledged "crypto winter," this round of decline from peak to trough is expected to reach 70%-75%, meaning that the Bitcoin price could drop to as low as $31,000.

Bitcoin has already dropped 44% from its peak in October last year. If it falls to the $31,000 level, it would represent a further 55% drop from the current level.

Tschosik and Mouls added that the data shows that looking back to 2011, the average decline in previous Bitcoin bear markets was 84%, lasting an average of 225 days. However, since Bitcoin peaked in early October last year, only 129 days have passed.

Nevertheless, the two analysts also pointed out that a "winter" is not inevitable. Compared to the past, Bitcoin now has more institutional buyers, which could bring greater stability to the price. "Observing historical data will reveal that the decline of a winter/major bear market has slightly slowed over time. We believe this trend will continue," they said in reference to price predictions.