Crypto Market Sees Familiar Pattern as BTC Tracks Post-U.S. Bitcoin ETF Price Movements: Van Straten

Bitcoin Pulls Back After Trump Inauguration, Echoing Past Sell-The-News Events

Is Bitcoin once again following a familiar sell-the-news pattern after a major U.S. development?

Since President Trump’s inauguration on January 20, Bitcoin (BTC) has tumbled from $109,000 to $80,000, extending its decline following last Friday’s digital assets summit. The price action suggests a continuation of the correction, a scenario that has played out before after major bullish catalysts.

Despite the short-term weakness, some Bitcoin bulls remain optimistic about the long-term impact. The shift from a previously hostile U.S. administration to a more crypto-friendly stance under Trump could provide a strong foundation for future growth. However, the lack of immediate buying support indicates that near-term bearish pressure remains dominant.

A similar pattern unfolded in early 2024 with the launch of U.S. spot Bitcoin ETFs. Leading up to the event, Bitcoin surged from $25,000 in October 2023 to $49,000 by January 2024—an over 40% gain. However, the ETF approval marked a short-term peak, followed by a 20% pullback before Bitcoin eventually soared to new highs above $73,000 in March.

This time, after Trump’s election victory in November, Bitcoin skyrocketed by 60%, reaching an all-time high of $109,000 before undergoing a nearly 30% correction. The repeated pattern suggests that major bullish events often lead to local tops before a significant pullback.

The question now is whether Bitcoin can rebound once this correction stabilizes. The broader macroeconomic landscape and investor sentiment will play a crucial role in determining the next major move.