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Bitcoin Cycle Persists With 70% Drop Expected, Says VC

#VineetBudki, CEO of Sigma Capital, predicts $BTC will experience a drawdown between 65% and 70% within the next two years despite trading above $110,000. The venture capital executive attributes the expected retracement to widespread misunderstanding of Bitcoin's fundamental utility among traders.

Speaking at the Global Blockchain Congress 2025 in Dubai, Budki explained that investors who lack understanding of the assets they hold tend to sell first during market uncertainty. He noted that Bitcoin's functionality remains intact regardless of price fluctuations, even if the token drops to $70,000.

The Sigma Capital chief maintains a long-term bullish outlook, forecasting that $BTC will reach $1 million or higher per coin within the next decade. Budki stated that adoption will grow through a combination of price speculation and real-world #Bitcoin use cases.

The prediction reignites debate over whether Bitcoin's historical four-year #cycle pattern remains relevant in 2025. Arthur Hayes, BitMEX co-founder and market analyst, argues the cycle has ended, claiming macroeconomic factors like interest rates and money supply growth now drive price action more than cyclical patterns.

Growing institutional adoption presents a counterargument to traditional cycle theory. Financial institutions, governments, digital asset treasury companies, #ETFs, and #cryptocurrency exchanges collectively control over 4 million $BTC, representing nearly 20% of Bitcoin's total supply according to   BitcoinTreasuries.NET data.

However, Seamus Rocca, CEO of crypto-friendly Xapo Bank, told reporters the four-year cycle remains active because investors continue treating $BTC as a risk-on asset. This behavior persists despite Bitcoin's intended function as a store of value.

Industry executives and analysts continue to debate when Bitcoin will achieve a seven-figure price point.