@seraphicglitch
The 2024 Bitcoin halving, reducing block rewards to 3.125 BTC, significantly influenced market sentiment and price trends in 2025. Initially, anticipation of reduced supply drove bullish sentiment, contributing to Bitcoin’s peak of $108,786 on January 20, bolstered by Trump’s pro-crypto policies. Post-halving, miners faced revenue pressure, increasing market sell-offs, which caused volatility, with Bitcoin dipping below $90,000. However, institutional adoption, including MicroStrategy’s increased holdings and $1.9 billion in ETF inflows, sustained optimism. The halving reinforced Bitcoin’s scarcity narrative, attracting long-term investors. Despite short-term fluctuations due to macroeconomic uncertainties and a Bybit hack, the halving’s supply shock supported a sustained upward price trend throughout Q1 2025.
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