Deja Vu Embraces Crypto Market as BTC Sees Price Dynamics Similar to U.S. Bitcoin ETF Launch, Van Straten Says
Is history repeating itself with yet another news selling event at a major US event?
James Van Straten | Edited by Parikshit Mishra Updated Mar 10, 2025 12:44 UTC Published Mar 10, 2025 11:02 UTC
What to keep in mind:
- Bitcoin reached a local peak after the introduction of the US ETF in January 2024 and the inauguration of President Trump in January 2025, followed by a market correction.
- Bitcoin is currently experiencing a 30% correction, while the launch of the US ETF caused a 20% correction.
Since President Trump's inauguration on January 20, Bitcoin (BTC) has fallen from $109,000 to $80,000 in a typical “sell the news” event. The correction continued after the digital asset summit on Friday.
While the price action may indicate a short-term bearish trend, Bitcoin bulls may view this as a long-term positive as the US administration has shifted its stance from hostile to more supportive. However, the lack of immediate buying pressure points to short-term weakness.
Similar price action was seen during the long-awaited launch of the US spot Bitcoin ETF in January 2024. From October 2023 to January 2024, Bitcoin rose from $25,000 to $49,000 – an increase of more than 40%. However, the launch turned out to be a local maximum, as the price then declined by 20% in the following weeks before eventually reaching new records above $73,000 in March.
This time, following President Trump's victory in the US elections in November, Bitcoin increased by 60%, reaching an all-time high of $109,000 in January, and then experienced a correction of almost 30%.
The general trend in both cases is that bullish news led to a local maximum in the price of Bitcoin, followed by a significant correction. The next question is whether Bitcoin will start to grow after this correction is complete, and much will depend on the macroeconomic situation.
