The recent Bitcoin crash—down 20% from its $109,000 peak in January 2025 to $82,000 by late February—raises questions: normal market adjustment or macroeconomic influence? Historical patterns show Bitcoin often endures 25%+ corrections in bull markets, like 2017’s seven 30%+ dips, suggesting this could be routine volatility. However, macroeconomic factors loom large. Rising U.S. interest rates, Trump’s tariff threats, and a rebounding dollar have sparked risk-off sentiment, driving investors from speculative assets like Bitcoin to safer havens. Regulatory delays and institutional sell-offs, as noted by experts like Arthur Hayes, further amplify the decline. While Bitcoin’s fundamentals remain intact, its growing correlation with traditional markets—evident in tandem drops with the Nasdaq—points to macro pressures overshadowing a typical adjustment. The $85,000 support level may decide its next move. 0 reply
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