empty
10.01.2025 09:58 AM
Bitcoin Losing Momentum

Bitcoin's inability to surpass the psychologically significant $100,000 mark has been met with resilience by BTC/USD bulls. They hold onto the belief that "if not today, then tomorrow, this level will yield!" However, the significance of this failure cannot be overlooked. In 2024, the digital asset saw a surge due to strong demand for ETFs and the anticipation of initiatives in the crypto sector from Donald Trump. Nonetheless, without the concurrent rallies in U.S. stock indexes, Bitcoin's performance would likely have been much less impressive. With the S&P 500 now facing a potential correction, Bitcoin is starting to exhibit signs of weakness.

Last year, the U.S. economy surprised many with its resilience against the Federal Reserve's most aggressive monetary tightening in decades (2022–2023). Yet, in 2025, it appears to have reached its limits. Further fiscal stimulus from Trump could risk fueling inflation. Unsurprisingly, Treasury bonds are being sold off, which drives up yields, pushes the S&P 500 downward, and leads to capital outflows from Bitcoin-focused ETFs. On January 8, Bitcoin ETFs experienced outflows of $83 million, marking their second-worst day in history.

Capital Flow Trends in Bitcoin ETFs

This image is no longer relevant

Investors are becoming increasingly aware of the declining global risk appetite. Just a few days into the new year, the market has already faced shocks such as terrorist attacks in New Orleans and Las Vegas, tariff disputes involving Donald Trump, and the looming threat of a debt crisis in Britain. As money moves away from risky assets, Bitcoin has also suffered.

Crypto enthusiasts are pointing to the narrowing premiums between the U.S.-based Coinbase exchange and China's Binance as a sign of rising interest in digital assets in the U.S. However, this trend may actually reflect a decline in demand for cryptocurrencies in Asia.

Price Spread Trends on Different Cryptocurrency Exchanges

This image is no longer relevant

BTC/USD bulls are still hoping that Donald Trump will fulfill his campaign promises, which they believe could create a golden age for cryptocurrencies. However, many of Trump's proposals are unlikely to materialize. For example, technology does not allow for all remaining bitcoins to be mined solely within the U.S., as he has suggested. His plan to establish a strategic reserve could increase the budget deficit, inflate the national debt, and accelerate inflation, which is unlikely to be well-received by the White House.

This image is no longer relevant

There remains some hope for regulatory leadership that favors cryptocurrency and the integration of tokens into the banking system. However, Bitcoin enthusiasts clearly expect even more. This disappointment is evident in the unwinding of long positions and profit-taking.

From a technical perspective, the BTC/USD daily chart is showing a 1-2-3 reversal pattern forming. A breakout below the local low at $91,400 (Point 2), or the bulls' failure to push prices back above the moving averages and the pivot level at $97,600, would create grounds for selling.

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

XAU/USD. Analysis and Forecast

Today, gold maintains a positive tone, trading above the $3100 level. Concerns about the escalation of the trade war between the U.S. and China, along with fears of a global

Irina Yanina 20:05 2025-04-10 UTC+2

US indices jump up to 12% on tariff pause

S&P 500 Overview for April 10 US indices jump up to 12% on tariff pause Major US indices on Wednesday: Dow +8%, NASDAQ +12%, S&P 500 +9.5%, S&P 500: 4,983

Jozef Kovach 13:22 2025-04-10 UTC+2

U.S. Inflation Data: What to Know and What to Expect

A highly anticipated March inflation report from the U.S. is expected today, with analysts predicting a slowdown, partly due to declining energy prices—which has brought some relief to consumers. According

Jakub Novak 12:09 2025-04-10 UTC+2

China Plans Emergency Meeting and a Strong Response to the U.S.

According to media reports, China's top leadership is set to hold an emergency meeting today to discuss additional economic stimulus measures following President Donald Trump's announcement of new tariff hikes

Jakub Novak 12:07 2025-04-10 UTC+2

Trump Suspends Tariffs for 90 Days but Raises Rates on China Even Further

President Donald Trump announced yesterday a 90-day suspension of tariff increases that had affected dozens of trade partners, while simultaneously raising tariffs on China to 125%. The president's policy shift

Jakub Novak 11:57 2025-04-10 UTC+2

Wall Street responding to president's call

Where there's smoke, there's fire. At the start of the second week of April, a rumor spread on social media about a 90-day delay in US tariffs, causing markets

Marek Petkovich 10:58 2025-04-10 UTC+2

Trump Maneuvers in Trade War With China (Potential for Continued Recovery in #SPX and AUD/USD)

The U.S. President continues maneuvering actively, engaging in geopolitics, economics, and global financial markets. Investors are asking: What happened on Wednesday? Why did the White House suddenly announce a truce

Pati Gani 09:56 2025-04-10 UTC+2

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

There are very few macroeconomic events scheduled for Thursday, but the U.S. inflation report still holds some relevance for traders. At the moment, inflation has limited influence because virtually everyone

Paolo Greco 06:49 2025-04-10 UTC+2

GBP/USD Overview. April 10: Trump Meets His Match

The GBP/USD currency pair showed gains and losses throughout Wednesday. The afternoon decline once again raised some questions, though market movements in recent months have lacked much logic. The market

Paolo Greco 03:21 2025-04-10 UTC+2

EUR/USD Overview. April 10: From Prince to Pauper

The EUR/USD currency pair continued to trade higher on Wednesday, once again failing to settle below the moving average line. Donald Trump keeps announcing new tariffs — or previously announced

Paolo Greco 03:21 2025-04-10 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.