♻️ Let's see some of the significant events and their previous impact during the formation of bottoms, after which Bitcoin rose significantly:
1⃣ Silvergate liquidity worries:
These concerns are related to the collapse of Silvergate Bank in 2023, a U.S. bank that heavily relied on cryptocurrencies. The liquidity pressure increased due to customer withdrawals and fund pulls, leading to significant financial difficulties, which negatively impacted cryptocurrency markets like Bitcoin.
2⃣ Fear of FTX asset liquidation (FTX Liquidation of assets fear):
Refers to the collapse of the FTX cryptocurrency trading platform at the end of 2022, where the liquidation of its assets led to a sharp decline in cryptocurrency prices. There were concerns about the impact of this collapse on market confidence, resulting in significant volatility in Bitcoin prices.
3⃣ Japan Carry Trade:
Refers to an investment strategy that takes advantage of low-interest rate differentials in Japan to borrow Japanese yen and sell it to purchase high-yield assets. In 2024, rising interest rates or economic instability led to the liquidation of these positions, causing volatility in stock and currency markets.
4⃣ Trump reveals tariffs (Trump Reveals Tariffs):
Relates to former U.S. President Donald Trump's imposition of tariffs on imports from countries like China and the European Union in 2025, raising fears of a trade war. This led to a decline in stock markets and increased costs for importers, with an impact on commodity prices.
5⃣ U.S. enters Iranian conflict (US enters Iranian conflict):
Refers to the escalation of geopolitical tensions in 2025 between the U.S. and Iran, increasing economic uncertainty. This led to rising oil prices and volatility in financial markets, including a rise in Bitcoin's price as a potential safe haven.
These events reflected their impacts on the price of Bitcoin as shown in the chart, where fluctuations are associated with levels of fear and economic and political risks.
Do you currently think a bottom has formed?! Share your opinion in the comments.
