Cryptocurrency market news

According to analysts, investors are now closely monitoring bitcoin’s behavior at price levels that were established before the U.S. presidential elections.

On Tuesday, Bitcoin lost all the gains it had made following President Donald Trump’s election victory in early November 2024. The sell-off continued on Wednesday, when the world’s largest cryptocurrency briefly fell below $72,000.

Fears of a cycle repetition may become a self-fulfilling prophecy, believes Vetle Lunde, head of research at K33. Long-term holders are reducing positions to protect previously earned profits, while new capital is reluctant to enter the market — this increases selling pressure, resembles past downturns, and triggers panic among investors.

The scale of Bitcoin’s correction differs significantly from the declines of previous years, when the market lost up to 80% of its value, the businessman recalled. According to him, the leading cryptocurrency has become a much more mature financial instrument, and its volatility has roughly halved in recent years.

According to Burry, a further sharp decline in Bitcoin could undermine companies that hold the leading cryptocurrency on their balance sheets, increasing pressure from their creditors. The expert believes that gold and silver are no longer isolated from the crypto market: growing correlation is turning precious metals into participants in a chain reaction that was previously considered unlikely.

According to Rasmussen, the current stagnation is only a temporary phase before a fundamental shift in the structure of digital asset ownership. The growth of the leading cryptocurrency will not be a random spike, and by 2029 BTC may surpass gold in market capitalization, the analyst believes.

According to Hougan, the current situation resembles the crypto winters of 2018 and 2022, when the overall decline continued despite positive news — growing cryptocurrency adoption and improving attitudes from the authorities of major countries.

Bitcoin will reach a local minimum around $60,000 in the first half of the year, analysts believe. Although short-term volatility may persist, experts expect a reversal and the beginning of Bitcoin’s growth.

Ripple’s Chief Technology Officer David Schwartz shared his thoughts on the future prices of cryptocurrencies, especially XRP. Not being a fan of making loud statements, as Schwartz wrote, he reminded his followers that markets have surprised people before. For example, he once considered it unlikely that XRP would trade at $0.25, but it happened.

The recent decline in Bitcoin may be creating a rare long-term entry opportunity, with Bernstein arguing that the current pullback could be the “last opportunity before Bitcoin rises as a sovereign asset.”

According to Ki Young Ju, the decline in the price of the leading cryptocurrency can be explained by ongoing selling pressure from retail traders and investors, as well as the lack of inflow of new capital.

Financial analysts are studying the direction Bitcoin will take after it exits the current downward trend.

Analysts believe the market has reached a point at which investors stop locking in profits. The bitcoin price of $86,600 serves as a psychological threshold: if the crypto asset remains above the average ETF share cost, this will strengthen investor confidence and stabilize capital inflows. A sustained drop below this level carries the risk of mass sell-offs — investors would lose their “profit buffer” and begin withdrawing capital, CryptoQuant suggested.

According to Peterson, February has traditionally been one of the most favorable months for Bitcoin — during this period, the growth of the leading cryptocurrency is sometimes more stable than in October.

Tom Lee, head of the largest Ethereum treasury company BitMine, believes that cryptocurrencies will begin to rise in price after the gold and silver market cools down.

According to the latest Alpha report from Bitfinex, Bitcoin failed to hold above the $95,000–98,000 resistance zone and subsequently returned to its established trading range. The correction erased all gains made since the beginning of the year and pushed prices below the year’s opening level, highlighting the fragile balance between buyers and sellers.