Bitcoin stabilized after falling to its lowest level during Trump's second term

Bitcoin stabilized after falling to a level close to its lowest since US President Donald Trump's return to the White House, amid some analysts saying that the sharp weekend drop prepared crypto markets for a rebound, UNN reports with reference to Bloomberg.

Details

By 8:26 a.m. New York time (3:26 p.m. Kyiv time), the largest cryptocurrency rose 2% to about $78,000, having previously fallen to its lowest level since April 7, when global markets collapsed after Trump's shocking announcement of massive trade tariffs. The rise came after Bitcoin fell almost 10% over the weekend.

"From a technical perspective, the recent decline brings the price closer to attractive levels," said Joel Kruger, market strategist at LMAX Group. He said Bitcoin is likely to find "strong support" if it falls to around $70,000.

In January, Bitcoin lost almost 11%, marking its fourth consecutive monthly decline – the longest losing streak since 2018, when it crashed after the initial coin offering (ICO) boom in 2017. The latest decline came amid general market instability: gold continued to fall on Monday after its biggest crash in a decade at the end of last week.

"Further declines below the 2021 highs of around $70,000 would be a major blow to long-term confidence," said Caroline Moron, co-founder of Orbit Markets.

Other cryptocurrencies, such as Ether and Solana, also showed a moderate rebound after falling earlier on Monday.

The White House's pro-crypto policies and a sharp increase in institutional adoption last year pushed Bitcoin to a record high above $126,000, but then a massive sell-off occurred in October. The original cryptocurrency has fallen by approximately 40% since reaching its all-time high.

According to Coinglass, nearly $590 million in long positions were liquidated in 24 hours. As risk sentiment deteriorated, broader Asian markets showed declines on Monday, while gold and silver continued their fall that began on Friday. European stock markets mostly showed growth on Monday.

"In the short term, the underlying sentiment remains bearish. Cryptocurrency tracks the broader asset markets and does not move in isolation," said Damien Loh, chief investment officer at Ericsenz Capital. "I expect Bitcoin's low to be between $70,000 and $74,000, and a high of around $90,000."

ETF outflows

The decline came after US President Donald Trump named Kevin Warsh as his candidate for the next head of the Federal Reserve. The appointment of Warsh, who earned a reputation as a hawk on inflation during his tenure as a Fed governor, prompted investors to reconsider their bets on a weakening US dollar after Fed Chair Jerome Powell's term expires in May.

Another factor putting pressure on Bitcoin is the continuous outflow of funds from exchange-traded funds (ETFs), which have been one of the main drivers of the price since their launch in January 2024, the publication writes.

Last week, investors withdrew nearly $1.5 billion from US Bitcoin ETFs, marking the second-largest weekly outflow. This concluded the longest streak of outflows in a month.

"As for cryptocurrencies, the stabilization of ETF inflows is a key signal to watch," said Timothy Misir, head of research at BRN, a digital asset analytics firm. "Without it, rallies are likely to fizzle out."

Bitcoin plummets below $80,000: crypto market gripped by sell-off wave31.01.26, 20:41 • 11388 views