Bitcoin Braces for Potential 70% Plunge, Even as London Embraces Crypto with New Staking ETP
London, UK – The cryptocurrency world is experiencing a stark contrast today. While leading analysts are sounding the alarm about a potentially severe correction in Bitcoin’s price, the London Stock Exchange is taking a significant step towards mainstream adoption with the launch of the first Bitcoin staking Exchange Traded Product (ETP). This breaking news underscores the volatile, yet increasingly integrated, nature of the digital asset landscape.
Analysts Predict Bearish Cycle Could Wipe Out Significant Gains
IntoTheCryptoaver founder Benjamin Cowen is warning investors to prepare for a potentially brutal bearish cycle, predicting a possible 70% drop in Bitcoin’s value. This isn’t an isolated forecast; Cowen points to historical precedent, noting previous cycles saw declines of 94%, 87%, and 77%. “These falls aren’t safe,” Cowen emphasized, highlighting the inherent risk in the crypto market. Currently trading around $117,010 (a 3.41% increase in the last 30 days and a remarkable 88.35% jump year-over-year), a 70% drop would bring Bitcoin down to approximately $75,000. The timing of such a correction remains uncertain, with Cowen suggesting a move to stablecoins if Bitcoin aggressively rises in the fourth quarter, potentially waiting until 2026 to re-enter the market.
Adding to the cautious outlook, Matt Hougan, CIO of Bitwise, anticipates a positive 2026, while Canary Capital’s CEO, Steven McClurg, estimates a greater than 50% probability of Bitcoin reaching $140,000-$150,000 before the next downturn. This suggests a potential peak followed by a significant correction – a pattern familiar to seasoned crypto investors. It’s a reminder that market tops often arrive without clear warning signs, frequently amidst widespread euphoria.
London Stock Exchange Opens Door to Bitcoin Staking for Institutional Investors
In a move signaling growing institutional interest, Valour, a subsidiary of Defi Technologies, has launched the world’s first Bitcoin staking ETP on the London Stock Exchange. This product offers professional investors an annual yield of 1.4% and is backed 1:1 with physically held Bitcoin in secure, institutional-grade cold storage utilizing multi-party computation (MPC) technology. The ETP is available in both GBP and EUR, with retail access planned for October 8th.
This isn’t Valour’s first foray into crypto ETPs; they already operate a similar product in France leveraging Core Chain, a Bitcoin Proof-of-Work compatible EVM blockchain. The launch has already generated positive market reaction, with Defi Technologies shares rising 5% on Nasdaq following the announcement. This demonstrates a clear appetite for regulated crypto investment vehicles.
The Evolution of Bitcoin Investment: From Holding to Earning
Traditionally, Bitcoin holders haven’t been able to earn rewards simply by holding their coins. However, the landscape is evolving. Beyond staking ETPs, investors can now earn yield through centralized lending platforms and participation in Layer 2 networks. “Wrapping” Bitcoin into tokens also allows participation in the Decentralized Finance (DeFi) ecosystem. This increasing accessibility to earning opportunities is a key driver of adoption and a significant development for long-term holders.
UK & US Strengthen Digital Asset Collaboration
Further solidifying the UK’s commitment to the digital asset space, the nation is strengthening cooperation with the United States on innovation and regulation. Bilateral technological agreements are actively promoting the inclusion of blockchain technology, building on the successful debut of Bitcoin and Ethereum ETPs on the London Stock Exchange earlier this year in May 2024. This collaborative approach aims to foster responsible innovation and establish clear regulatory frameworks.
The simultaneous warnings of a potential price correction and the launch of a new staking ETP highlight the complex and dynamic nature of the Bitcoin market. While volatility remains a key characteristic, the increasing institutional interest and evolving investment options suggest a maturing ecosystem. Staying informed and understanding both the risks and opportunities is crucial for navigating this rapidly changing landscape. For the latest updates and in-depth analysis, continue to check back with archyde.com for breaking news and expert insights.
