Bitcoin Faces Sell-The-News Correction After U.S. Political Shift
Is Bitcoin once again experiencing a classic “sell-the-news” event following a major U.S. development?
Since President Trump’s inauguration on January 20, Bitcoin (BTC) has dropped from its all-time high of $109,000 to $80,000, continuing its correction after the digital assets summit last Friday. This price decline mirrors previous patterns where major bullish catalysts led to short-term market pullbacks.
While the immediate price action suggests bearish sentiment, long-term Bitcoin bulls may view this as a positive shift, considering the U.S. administration’s transition from a previously hostile stance on crypto to a more supportive one. However, the lack of strong buying pressure at current levels indicates ongoing market weakness in the short term.
A similar pattern unfolded during the launch of U.S. spot Bitcoin ETFs in January 2024. Leading up to the event, Bitcoin rallied from $25,000 in October 2023 to $49,000 in January 2024—gaining over 40%. However, the launch acted as a local top, triggering a 20% pullback before Bitcoin eventually surged to new all-time highs above $73,000 in March.
This time, after Trump secured the presidency in November, Bitcoin saw a 60% rally, reaching $109,000 before reversing nearly 30%. The recurring theme in both cases is that major bullish news created a peak, followed by a substantial correction.
The key question now is whether Bitcoin will resume its upward trajectory once the current correction plays out. Much will depend on macroeconomic conditions and market sentiment in the weeks ahead.
