empty
25.02.2025 01:37 PM
Bitcoin longing for crypto winter

What triggered the 20% crash in BTC/USD from its all-time highs? Was it uncertainty in the White House's policy, investor fatigue with Trump trading, or fraudulent activities involving crypto exchanges?

For a long time, Bitcoin resisted strong headwinds, but once US stock indices suffered a two-day sell-off, bullish patience snapped. Buyers retreated, and soon after, they began to flee en masse.

The first shall be last, and vice versa

In 2025, gold shines brightly, as investors bet that Trump's tariff threats are just a negotiation tactic. Meanwhile, Bitcoin and the US dollar, which surged after the November presidential elections, have now fallen out of favor—for the same reason.

Trump trading is retreating, and investors are tired of his loud rhetoric, which turned out to be more bark than bite. For those still in doubt, just look at Trump's and Melania's memecoins—which soared after his inauguration but then lost over 80% of their value. Investors have also lost confidence in the strategic Bitcoin reserve, the rapid regulatory framework for the crypto industry, and the SEC's crypto-friendly stance.

As a result, BTC/USD has started underperforming not only gold but also US high-tech stocks.

Crypto basket vs. NASDAQ performance

This image is no longer relevant

Fraud scandals are fueling the crypto sell-off.

OKX admitted to handling $1 trillion in illegal transactions and agreed to pay a $504 million fine. Hackers stole nearly $1.5 billion worth of Ethereum from ByBit. Just like during the previous crypto winter, fraud and regulatory violations are piling up, making investors wary of digital assets. According to CoinGlass, in the past 24 hours alone, $1.34 billion in crypto derivatives positions were liquidated. Meanwhile, the US stock market downturn is adding to the BTC/USD hectic sell-off.

This image is no longer relevant

Commonly, a correction in the S&P 500 and Nasdaq signals a decline in global risk appetite. Therefore, as a high-risk asset, Bitcoin has little choice but to fall.

Could BTC/USD be saved by a slowdown in the Fed's preferred inflation gauge—the Personal Consumption Expenditures (PCE) index—for January? Highly unlikely.

In fact, an unexpected surge in the PCE would likely boost demand for the dollar and trigger even more selling of digital assets.

Technical outlook for BTC/USD

On the daily chart, BTC/USD has formed a double-top pattern.

As prices move further away from the moving average combination, the chances of a full trend reversal from bullish to bearish increase. As long as Bitcoin trades below $91,250, selling remains the preferred strategy.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Japan Hopes for a Positive Outcome in Trade Negotiations—Otherwise, Recession and Rising Inflation Loom

The revised estimate of Japan's Q1 GDP showed that the economy contracted less than previously estimated, with consumption figures also revised upward. GDP declined by 0.2% year-over-year instead

Kuvat Raharjo 00:21 2025-06-11 UTC+2

The Dollar Is Doomed, Though It Doesn't Know It Yet

In war, all methods are justified. U.S.–China trade negotiations are ongoing in London, and everything is being utilized—from education to rocket engines. Washington is prepared to make concessions, including lifting

Marek Petkovich 00:21 2025-06-11 UTC+2

The Dollar Stabilized, but It Won't Last Long

The latest CFTC report indicates that the sell-off of the U.S. dollar has either ended or is close to ending. The net short position against major currencies decreased by $1.094

Kuvat Raharjo 18:45 2025-06-10 UTC+2

No News Is Already Good News

Trade negotiations between the United States and China are set to continue for a second day, as both sides aim to ease tensions surrounding technology exports and rare earth elements

Jakub Novak 11:19 2025-06-10 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is under pressure, having failed to consolidate above the 1.1435 level and showing intraday declines toward the psychological level of 1.1400 and below, amid U.S. dollar

Irina Yanina 10:45 2025-06-10 UTC+2

Markets Hope for a Breakthrough in U.S.-China Trade Talks (Gold and GBP/USD May Continue Declining)

Markets have virtually come to a standstill in anticipation of the outcome of the trade negotiations between representatives of China and the United States. So far, there have been

Pati Gani 10:44 2025-06-10 UTC+2

The ECB Is Ready to Wait

The euro and the pound remain within a range against the U.S. dollar, experiencing some pressure following the first day of negotiations between China and the U.S. However, in addition

Jakub Novak 10:27 2025-06-10 UTC+2

The Market Lights Up New Stars

Nothing lasts forever under the moon. While markets advance gradually, investors closely monitor the competition among the world's most valuable companies. NVIDIA and Microsoft take turns leading, while Apple lingers

Marek Petkovich 09:30 2025-06-10 UTC+2

What to Pay Attention to on June 10? A Breakdown of Fundamental Events for Beginners

There are a few macroeconomic reports scheduled for Tuesday. The economic event calendars for both the Eurozone and the United States are empty, while the UK will release reports that

Paolo Greco 06:40 2025-06-10 UTC+2

GBP/USD Overview – June 10: A New Trial for Trump

The GBP/USD currency pair showed no interesting movements on Monday. However, given the current situation in the U.S., it's hard to envision any growth for the dollar. It turns

Paolo Greco 04:11 2025-06-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.