Analyst: Correction Not Over, BTC May Reach New High in September-October Next Year.

On Thursday, the cryptocurrency market saw a slight rebound from recent trading lows, but prices remained well below the highs reached in March, as pre-halving volatility and weakness continued to dominate the market. Cryptocurrency enthusiasts are eager to return to bull market conditions, as the market has been in a state of correction since Bitcoin surged past $64,000 in early March. According to BitPush data, Bitcoin bounced back from Wednesday's low of $59,650 to reach an intraday high of $64,200 on Thursday before falling back to a support level of $63,300.

On Thursday, the top 200 altcoins experienced mixed movements. Livepeer (LPT) saw the largest price increase, rising by 12.7% to $13.27, while Jito (JTO) rose by 10.9%, and Centrifuge (CFG) by 8.5%. Meme coin cat in a dogs world (MEW) led the declines, dropping by 11.7%, followed by Core (CORE) with a 9% decline, and Sui (SUI) with a 7.3% decline. The total market capitalization of cryptocurrencies is currently $2.3 trillion, with Bitcoin's dominance at 54.2%.

Concerns about US inflation and interest rates remain the root cause of volatility. Atlanta Fed President Raphael W. Bostic reiterated on Thursday that he does not expect a rate cut before the end of the year. Minneapolis Fed President Neel Kashkari also stated that patience is needed until there is confidence in a decrease in inflation, which may not come until 2025 before considering a rate cut. The US stock market opened lower, rose to positive territory midday, then fell back into the red at the close. The S&P 500 and Nasdaq indices fell by 0.22% and 0.52%, respectively, while the Dow remained flat. Despite the stock market downturn, the US dollar index rose by 0.4% to 106.152, and the yield on the 10-year US Treasury rose by 7.6 basis points to 4.638%. Analysts at Secure Digital Markets stated, "As Wall Street seeks stability after consecutive declines, the S&P 500 has experienced volatility."

They pointed out, "Overall, the recent downturn in the stock market can be attributed to diminished rate cut expectations, prompting investors to take profits after a strong first quarter performance."

Analysts: BTC May Reach Next Peak in September/October Next Year
The recent weakness in Bitcoin over the past few weeks has been related to a decrease in outflows from spot BTC ETFs, with net outflows every day since last Friday. Data shows that on Wednesday, outflows reached a recent peak of $165 million, led by Grayscale's GBTC with $133.1 million, while BlackRock's spot Bitcoin product recorded the lowest inflows at only $18.1 million. Although with the halving and ETF flows easing, it is expected that prices will continue to consolidate in the short term, most analysts expect Bitcoin's price to eventually resume its upward trend.

Market analyst Rekt Capital stated that based on previous halving cycles, BTC may reach its next peak around mid-September to mid-October 2025. He added, "The current market conditions show a spot premium over futures, reminiscent of when Bitcoin was trading around $40,000, indicating a reduction in speculative trading, which is a favorable sign."

Bearish Sentiment Indicates Market Bottoming Out?
Market intelligence company Santiment stated that with the latest decline in Bitcoin prices, sentiment among crypto investors has turned bearish. In a post on April 18th, the company shared a chart showing consistent bearish comments from the crypto community on Bitcoin and other tokens like Ethereum: "There has been consistent bearish sentiment towards mainstream coins, strengthening the case for further upside."

The chart shows that since Bitcoin's historic high of $73,835 on March 14th, mentions of "bull market" or "bull market cycle" on crypto social media have decreased, while mentions of "bear market" or "bear cycle" have steadily increased. Historically, bearish sentiment is often observed at market bottoms. Santiment analysts wrote, "Historically, price trends have been contrary to the expectations of retail traders. The rapid decline of FOMO combined with a significant increase in FUD is a hopeful combination, and the crypto market may see a recovery shortly before or after the halving."

Data from the Alternative.me crypto fear and greed index shows a significant decrease from last week's 76 and last month's 79 to the current level of 57, although it remains in the "greed" zone. This indicates that despite over a week of price adjustments, trader sentiment is gradually becoming optimistic.