Market Update

Experience of the encryption market, ETF & Trump effect

The encryption markets recently fell to the lowest prices in three months, reflecting most of the gains after Trump’s US presidential victory. Bitcoin was with a relatively well that was broken until the level of $ 92,000 was broken, which had been supported since November 2024. Then the price decreased rapidly to 80,000 dollars, where the support was found.

Feelings were weakened in the encryption market, as indicated by the Crypto Fear and Greed Index, which fell from the level of 55 (neutral) to 10 (severe fear) last month. He is currently in 34.

Crypto’s high connection to traditional markets means that bitcoin and the prices of broader encryption were also affected by the uncertainty about the definitions and what it can concern for the American economy in the near future.

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Moreover, encryption events, such as the repercussions from the latter Bybit Exchang Hack,, Which were described as the largest theft of encryption in history, and the flows coming out of the Instant Bitcoin investment funds, in the recent decline in the prices of encryption assets.

The recent announcement by Trump that the United States will move forward with a strategic coding reserve, and a batch of encryption asset prices, with a Bitcoin crowd up to $ 95,000. However, despite Trump’s pledge to store Bitcoin and other encryption assets, it is not quite clear even how this reserve will work, how taxpayers can benefit, and if there are any future purchases for encryption. This uncertainty caused a decrease in bitcoin, which is currently about $ 90,000.

In my opinion, we are now at a crossroads. Reducing financial conditions may mean encryption assets and wider risk assets from here. US Treasury Secretary Scott Bessin recently confirmed the management’s plan to reduce interest rates to help Americans struggle. However, more noise on customs tariffs or encryption backup plans that do not meet society may cause bitcoin to decrease beyond. We will have to see the narration that proves to be stronger for the next weeks and months.

In general, we see recovers from 20 to 35 % in Bitcoin Bull markets before finding a base and starting the leg. The level of $ 80,000, which the price of bitcoin recently decreased is a 28 % decrease from the highest level at 109300 dollars ever, so there is an opportunity because we have already seen the lowest level.

On the other hand, if the price is further decreased due to the above reasons, the 35 % decrease of the highest level will put the price at $ 70,000 before any base is formed and the following leg begins.

Although I understand that investors may feel fear due to the large price movements, the retrieval of the price of any category or asset instrument is normal and expected, and we must remember that we are still at this time last year.

Investors who have ready -made money and who have a long -term conviction in Bitcoin may see this time as a good time to add more to their total property.



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