#TariffHODL #The Current State Of Bitcoin
Crypto Market Sees $700 Billion Loss After Trump's Tariff Announcement In a shocking turn of events, the cryptocurrency market has plummeted, wiping out over $700 billion in just four days. This drastic drop comes on the heels of Donald Trump's statement about increasing tariffs on China, Canada, and Mexico.
Also the second major reason for crypto fall is newly launched Chinese AI Deepseek. As people are liquidating crypto assets to put in AI based assets.
According to recent data, the total market capitalization of all cryptocurrencies has dropped by a staggering 21% - from $3.57 trillion on January 31 to an intra-day low of $2.81 trillion. This significant decline also marks a 17% drop from the all-time high of $3.73 trillion reached on December 17, 2024.
#MarketRebound Key Factors Influencing Price and 2025 Prediction of bitcoin
1.Institutional Adoption : Big companies like BlackRock and others started offering $BTC to their clients in 2024, and new Bitcoin investment options (ETFs) made it easier for even bigger investors like pension funds to get involved. This made$BTC more stable and attractive to investors who don't like a lot of risk. More of this in 2025 could make Bitcoin's price even more stable and establish it as a good long-term investment.
2.Regulatory Developments : Regulation played a defining role in bitcoin’s 2024 success, with the SEC approving multiple spot ETFs and clarifying its stance on bitcoin as a commodity.
3.Sovereign Adoption : Sovereign adoption of bitcoin$BTC as a strategic reserve asset remains a compelling possibility for 2025. In the U.S., the regulatory shift toward bitcoin-friendly policies, exemplified by pro-bitcoin voices within the Trump administration, could set a precedent for broader acceptance. Sovereign adoption also reduces circulating supply, as reserves are typically held long-term and removed from active market liquidity. As more nations accumulate bitcoin for strategic reserves, a combination of reduced supply and increased demand leads price increases.
