Bitcoin has fallen about 50% from its highs, a drawdown that fits the pattern of past bear markets on a volatility-adjusted basis. Analyst Jamie Coutts calls the $60,000 range an attractive long-term accumulation zone. But he warns the market hasn't fully washed out and another leg lower is still possible.
The $60,000 accumulation call
Coutts argues that Bitcoin's current price zone offers a compelling entry for long-term investors. Yet he stresses that the broader market still carries excesses. “The market has not fully washed out,” he said. That means another leg lower remains on the table, even as some buyers step in at these levels.
Why the pressures are mounting
The crypto market isn't operating in a vacuum. A heavy wave of US Treasury issuance is sucking liquidity out of risk assets. On top of that, a $250 billion IPO pipeline is competing for capital. Big tech companies are also shifting cash toward AI spending, pulling money away from speculative bets like crypto. Those headwinds make it harder for Bitcoin to stage a quick recovery.
Borrowing costs and the Fed factor
Coutts points to a structural problem for the US government: higher borrowing costs and weaker tax receipts make it harder to keep Treasury yields in check. That dynamic squeezes risk assets further. But there's a flip side. He notes that new liquidity from the Federal Reserve could eventually support Bitcoin and other risk assets during downturns. The question is timing — and whether the Fed will act before another leg lower plays out.
The market is watching for signs of a liquidity injection from the Fed. Until then, Coutts expects continued pressure. The $60,000 zone may be attractive for patient buyers, but the risk of a deeper drop keeps the short-term outlook uncertain. Whether the Fed steps in with fresh liquidity could determine if the market finds a bottom or slides further.
