Markets, ETF, Bitcoin Is historical past repeating itself with one other sell-the-news occasion from a significant U.S. occasion?
Since President Trump was inaugurated on Jan. 20, bitcoin (BTC) has dropped from $109,000 to $80,000, making it a basic “sell the news” occasion. The correction has continued for the reason that digital belongings summit on Friday.
While the value motion might dictate short-term bearishness, bitcoin bulls may view it as a long-term constructive catalyst, because the U.S. administration has shifted from a hostile stance underneath the earlier administration to a extra favorable one. However, the dearth of rapid shopping for stress suggests short-term weak point.
The same value motion occurred in the course of the much-anticipated launch of U.S. spot bitcoin ETFs in January 2024. From October 2023 to January 2024, bitcoin surged from $25,000 to $49,000—over a 40% rally. However, the launch marked a neighborhood high, as the value subsequently declined by 20% over the next weeks earlier than finally reaching new all-time highs above $73,000 in March.
This time, after President Trump received the U.S. election in November, bitcoin rallied 60%, hitting an all-time excessive of $109,000 in January earlier than present process a virtually 30% correction.
The widespread sample in each situations is that bullish information triggered a neighborhood high in bitcoin’s value, adopted by a big correction. The subsequent variable is will bitcoin begin to transfer greater after this correction has completed, with loads relying on the macro landscape.
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data Read More