Cryptographic markets have recently fallen to their lowest prices in three months, reversing most profits after Trump’s presidential victory in the United States. Bitcoin had been maintaining relatively well until the level of $ 92,000, which had been supported since November 2024, broke. The price then fell quickly to $ 80,000, where he found support.
The feeling in the cryptographic market has weakened, as the cryptographic fear and greed index means, which has fallen from a level of 55 (neutral) to as low as 10 (extreme fear) in the last month. It is currently in 34.
The high correlation of Crypto with traditional markets means that the prices of Bitcoin assets and broader Crypto have also been affected by uncertainty around tariffs and what they could mean for the economy of the United States in the immediate future.
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In addition, specific cryptographic events, such as the consequences of the recent Bybit Exchange Hack, which has been described as the greatest attraction in history, and registered outputs of Bitcoin Spot ETFs have also contributed to the recent drop in cryptographic assets prices.
Trump’s recent announcement that the United States would advance with the creation of a strategic cryptography reserve provided an impulse to the prices of cryptographic assets, and Bitcoin returned to the price level of $ 95,000. However, despite the fact that Trump is committed to storing Bitcoin and other cryptography assets, it is not yet completely clear how such a reserve will work, how taxpayers could benefit, and if there will be any future purchase of cryptographic assets. This uncertainty has caused a decline in the price of Bitcoin, which is currently around $ 90,000.
In my opinion, we are now at a crossroads. Loosing financial conditions may mean that cryptographic assets and broader risk assets increase from here. The United States Secretary of the United States, Scott Besent, recently reaffirmed the administration plan to reduce interest rates to help Americans with difficulties. However, the noise around tariffs or cryptography reserve plans that do not meet community expectations could make the price of Bitcoin decrease more. We will have to see what narration shows to be stronger in the coming weeks and months.
In general, we see 20-35% setback in Bitcoin’s Alcista markets before a base is located and the next highest leg begins. The level of $ 80,000 to which the price of Bitcoin recently fell is a 28% decrease in the maximum of $ 109,300 of all time, so there is the possibility that we have already seen the minimum.
On the other hand, if the price fell even more due to the reasons mentioned above, a 35% decrease from the maximum of all time would put the price at $ 70,000 before any base is potentially formed and begin the next higher leg.
While I understand that investors may feel fearful due to large price movements, retouches in the price of any kind or asset instrument are normal and expected, and we must remember that we are still significantly beyond this time last year.
Investors with cash ready and who have a long -term condemnation in Bitcoin can see this as an appropriate time to add more to their general holdings.
