In 2025, the cryptocurrency market is once again facing severe tests. The main reasons are Trump's new tariffs and strict economic policies. This forces investors to flee risk assets, leading to a massive sell-off and triggering panic. However, looking back, similar situations occurred during his first presidential term.
In 2018, the cryptocurrency market experienced a crash but then entered a strong bull market. History does not repeat itself exactly, but you can often find similar patterns. Key factors to watch include Federal Reserve policies, the global economic environment, the speed at which the cryptocurrency market adapts to new realities, and society's acceptance of cryptocurrencies. The cryptocurrency market may still be under pressure in the short term, but history shows that after a turbulent period, a growth phase may follow.
The cryptocurrency market is currently in a local downtrend. The prices of Bitcoin and altcoins are stagnant and showing a downward trend, as investors are worried about further instability in the market and tend to avoid risk assets.
Trump's new tariffs and economic policies: include new trade tariffs on countries such as the EU, Canada, and China, as well as the potential escalation of the economic war with China, which has raised concerns among investors. In the past, similar situations have led to capital flowing into safe assets such as gold and bonds, while high-risk assets, including cryptocurrencies, are threatened.
The uncertainty of interest rate decisions and pressure from traditional markets have led to reduced liquidity, which in turn affects the cryptocurrency market.
Although the current decline in the cryptocurrency market is causing concern among major investors, historical experience suggests that there is still a possibility of recovery. How will the market develop in the future?
Short-term: High volatility, potential new lows.
Mid-term: Market adaptation, gradual recovery.
Long-term: Affected by Federal Reserve monetary easing, increased institutional demand, and the impact of the BTC halving cycle, a rebound and potential growth may occur.
The current market in the cryptocurrency space is essentially a contest between retail investors and institutional players. If you lack solid professional skills, understanding, and connections, you can only get cut! If you want to strategize together and reap the rewards with like-minded cryptocurrency enthusiasts, feel free to comment: 666 to discuss together.
