Cryptographic markets recently dropped at their lowest prices in three months, reversing most of the gains after Trump’s American presidential victory. Bitcoin was held relatively well up to $ 92,000, which held as support since November 2024, was broken. The price then quickly fell to $ 80,000, where he found support.
The feeling on the cryptography market was weakened, as indicated by the Crypto Fear and Greed index, which went from a level of 55 (neutral) to as low as 10 (extreme fear) last month. He is currently 34 years old.
The strong correlation of crypto with traditional markets means that the prices of wider and broader crypto assets have also been affected by uncertainty concerning prices and what they could mean for the American economy in the immediate future.
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In addition, events specific to crypto, such as the rebate of the recent bybit exchange hack, which has been described as the greatest crypto robbery in history, and the recording outputs of Bitcoin ETF, also contributed to the recent fall in the prices of cryptographic assets.
Trump’s recent announcement that the United States would advance with the creation of a strategic cryptography reserve has given a boost to the prices of cryptographic assets, Bitcoin is recovering at the price level of $ 95,000. However, despite the fact that Trump undertakes to store Bitcoin and other cryptographic assets, it is not entirely clear how such a reserve will work, how it could benefit taxpayers, and if there will be future purchases of cryptographic assets. This uncertainty has caused a decline in the Bitcoin price, which is currently at around $ 90,000.
In my opinion, we are now at a crossroads. The relaxation of financial conditions could mean assets of cryptography and larger prices of risk assets increase from here. The United States Secretary of the Treasury, Scott Bessent, recently reaffirmed the administration plan to reduce interest rates to help Americans in difficulty. However, the additional noise of crypto rates or reserve plans that do not meet the expectations of the community could lead to a drop in the price of Bitcoin. We will have to see what story is stronger in the weeks and months to come.
Generally, we note with retractions of 20 to 35% in the Bitcoin bull markets before a base and the next leg begins. The level of $ 80,000 at which the Bitcoin price recently dropped is a decrease of 28% compared to the highest of $ 109,300, there is therefore a chance that we have already seen the bottom.
On the other hand, if the price was to fall more due to the reasons mentioned above, a 35% drop in the top of all time would put the price at $ 70,000 before any base is formed and the next leg begins.
Although I understand that investors may be afraid because of the important price movements, the retractions in the price of any class or asset instrument are normal and expected, and we must remember that we are always considerably passed compared to that time last year.
Investors with ready species who have a long -term conviction to Bitcoin can see this as a timely moment to add more to their overall assets.
