The crypto market has begun showing signs of recovery after a volatile weekend that shook investor sentiment. Veteran trader Peter Brandt believes Bitcoin (BTC) could soon retest its all-time high near $125,100, but warns that the path upward may include one final correction.
Peter Brandt: “A Shakeout or a Parabolic Breakdown”
According to Brandt, Bitcoin’s recent price movements point to two potential outcomes:
“Either we get a massive shakeout, followed by a quick move to new all-time highs, or the parabola breaks — which historically has resulted in a 75% price decline.”
While Brandt doesn’t expect another 80% drop like in previous cycles, he suggests that BTC could still retrace toward the $50,000–$60,000 range before resuming its uptrend.
Weekend Volatility and the Importance of Risk Management
The recent market drop was triggered by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese goods, which led to over $19 billion in liquidations across crypto markets.
Bitcoin fell from around $121,000 to $102,000 before recovering to $112,400.
Charles Edwards, founder of Capriole Investments, cautioned traders about leverage, noting that even moderate positions can be dangerous:
“Even leverage above 1.5x is risky. Always account for long-term exposure.”
Macro Outlook: Fed Policy and Inflation Signals
BitMEX co-founder Arthur Hayes took a bullish stance following comments from Federal Reserve Chair Jerome Powell, who signaled the end of quantitative tightening.
“Back up the truck and buy everything,” Hayes urged, suggesting a renewed liquidity wave could fuel crypto prices.
Meanwhile, falling oil prices, signs of weakness in the U.S. labor market, and expectations of upcoming interest rate cuts are shaping a favorable environment for Bitcoin.
Pav Hundal, lead analyst at Swyftx, described the current setup as a “Goldilocks zone” for BTC, while macroeconomist Lyn Alden said the next quarter is likely to be “particularly favorable” for the cryptocurrency.
With momentum returning and sentiment improving, all eyes are now on Bitcoin’s potential new all-time high — once it weathers what could be its final dip.
*This content does not contain investment advice.
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