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.
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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