Bitcoin’s price remains tied to its historical four-year cycle of steep rises and sharp corrections, according to Vineet Budki, CEO of venture firm Sigma Capital, who expects the next downturn to bring a 65% to 70% retracement within the next two years.
Speaking to Cointelegraph at the 15th Global Blockchain Congress in Dubai, Budki said that many investors still fail to understand Bitcoin’s true value and purpose a key reason behind recurring sell-offs.
“Bitcoin will not lose its utility if it comes down to $70,000,” Budki said. “The problem is that people don’t know its utility, and when people buy assets they don’t understand, they sell them first. That’s where the selling pressure comes from.”
Budki emphasized that despite potential volatility, Bitcoin’s underlying utility and long-term fundamentals remain strong. However, the asset’s speculative nature means retail investors are often caught in emotional trading cycles that amplify both rallies and crashes.
The comments reflect a broader sentiment among industry veterans that Bitcoin’s cyclical boom-and-bust pattern driven by halving events and speculative hype, is far from over, even as institutional adoption and on-chain maturity grow.