Are we witnessing a recurrence of a "sell-the-news" event following a significant U.S. development?
#CryptoMarketWatch #MarketPullback
Following President Trump's inauguration on January 20th, Bitcoin (BTC) experienced a decline from $109,000 to $80,000, consistent with a "sell the news" market reaction. This downward trend has persisted since Friday's digital assets summit.
Although current market trends indicate short-term bearish pressure, the shift in the U.S. administration's stance toward a more favorable regulatory environment presents a potential long-term positive catalyst for Bitcoin investors. Nevertheless, the absence of significant buying pressure currently suggests near-term market weakness.
A similar price action occurred during 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 local top, as the price subsequently declined by 20% over the following weeks before eventually reaching new all-time highs above $73,000 in March.
Following the November U.S. presidential election victory by President Trump, Bitcoin experienced a 60% surge, reaching an all-time high of $109,000 in January, subsequently undergoing a correction of approximately 30%.
In both cases, positive news events preceded a peak in Bitcoin's price, subsequently resulting in a substantial correction. The key question is whether Bitcoin will resume its upward trajectory following this correction, a scenario heavily contingent upon broader macroeconomic conditions.
