After having reached an all-time high, bitcoin is now facing strong bearish pressure. Analysts are trying to figure out how deep it may decline. Bitcoin and the entire crypto market are currently experiencing another major sell-off. Therefore, BTC is projected to plunge to $13,000.

Ian Harnett, the co-founder, and chief investment officer of Absolute Strategy Research, outlined such a scenario. "We would still be selling these kinds of cryptocurrencies into this environment. It really is a liquidity play. What we've found is it's neither a currency, nor a commodity and certainly not a store of value," he said. Now, even more market experts are inclined to believe that bitcoin is only a speculative asset. They say that past crypto rallies have shown that bitcoin tends to plummet up to 80% from its all-time highs. It reached a historical high of $69,000 at the end of 2021. This is why an 80% drop will push the crypto asset to $13,000.

"In a world where liquidity is plentiful, the bitcoins of this world do well. When that liquidity is taken away — and that’s what the central banks are doing at the moment - then you see those markets come under extreme pressure," Harnett noted.