Bitcoin Drops 30%—A Setup for the Next Rally?
Bitcoin has been in a rough patch, down 30% from its all-time high of $109,356 in January 2025. This pullback isn’t too surprising—analysts say it’s a classic “sell the news” reaction after major bullish events like President Trump’s inauguration and the recent Executive Order establishing a strategic bitcoin reserve. While the short-term outlook looks shaky, some believe this could be setting the stage for bigger gains down the road, depending on how the broader economy plays out.
Also Read: Bitcoin’s Drop Feels Like 2017 Crash—Crypto Exec Sees Strong Rebound
Market Jitters & Economic Uncertainty
Adding to the turbulence, concerns over a possible 2025 recession are weighing on investors. Trump hasn’t ruled out the possibility, and his escalating trade wars—with tariffs on Canada, Mexico, and China hitting as high as 25%—have disrupted $2.2 trillion in trade. This has pushed up consumer prices and shaken corporate confidence. The S&P 500 and other major stock indices took a hit on Monday, as markets struggle to digest the president’s economic agenda. Trump, however, defends his policies as part of a “transition” to restore national wealth, though he acknowledges there could be some short-term pain.
Bitcoin has a history of bouncing back after major corrections, but the lack of strong buying pressure right now has some traders playing it safe. With BTC hovering around $77,000, all eyes are on key support and resistance levels to see if this dip turns into the next big rally.
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