Bitcoin Could Drop Below $60K Amid Economic Headwinds, Warns Hedge Fund CEO

Bitcoin’s recent rally may be coming to an end as experts predict a slow but painful correction in the months ahead. Quinn Thompson, founder of crypto hedge fund Lekker Capital, told CoinDesk he sees BTC falling back to the $50K-$59K range—down significantly from the current $83K level and nearly 50% off its all-time high of $109K just two months ago.

Thompson attributes the bearish outlook to a “slow grind down” rather than a sharp crash, making it psychologically tougher for investors. He dismisses recent pro-crypto announcements from the Trump administration as “nothingburgers,” and argues that MicroStrategy’s ongoing Bitcoin purchases aren’t enough to prop up the market.

He outlines four key macroeconomic headwinds. First, aggressive government spending cuts under the Department of Government Efficiency (D.O.G.E), led by Elon Musk, could stall job growth and consumer spending. Second, stricter immigration enforcement may shrink the labor force, pushing up wages and costs for businesses. Third, the administration’s unpredictable tariff policies are already deterring business investment. Lastly, the Federal Reserve remains cautious on rate cuts due to persistent inflation, with only limited easing expected in 2025.

Thompson believes the Trump administration’s goal is to “right the ship,” even at the cost of market declines. While coordinated efforts between the Treasury and the Fed could eventually tame inflation, he warns the policies risk triggering a deeper recession. With midterm elections approaching in 2026, the current economic tightening may persist through the year.

As the crypto market faces tightening liquidity and policy uncertainty, Thompson advises investors to prepare for a prolonged downturn, describing it as a “controlled burn” that could easily spiral into a “forest fire.”