Key Insights:
- Bitcoin’s price peaked shortly after the U.S. ETF launch in January 2024 and the inauguration of President Trump in January 2025, leading to corrections in both cases.
- Currently, Bitcoin faces a 30% price correction compared to a 20% decline observed post the ETF launch.
Since President Trump took office on January 20, the value of Bitcoin (BTC) has fallen from $109,000 to $80,000, exemplifying the “sell the news” behavior in market dynamics. Though this trend may indicate short-term weaknesses to some investors, others view the changes positively, as the current administration’s stance appears less hostile compared to the previous one.
A similar trajectory was seen with the launch of U.S. spot Bitcoin ETFs in January 2024, when Bitcoin surged from $25,000 to $49,000—a 40% increase—before dropping 20% in subsequent weeks before reaching all-time highs above $73,000 in March.
This latest scenario, following Trump’s election win in November, saw Bitcoin rise 60% to $109,000 in January 2025, only to experience a near 30% correction afterwards.
The recurring theme involves bullish news resulting in a local peak in Bitcoin prices, succeeded by substantial corrections. Future movements will depend significantly on the macroeconomic conditions.
