Analyst: Bitcoin’s current price trend recreates the situation after the launch of the US Bitcoin ETF

Odaily News CoinDesk analyst James Van Straten wrote that since President Trump took office on January 20, the price of Bitcoin has fallen from $109,000 to $80,000, becoming a typical "sell on news" event. This pullback has continued since Friday's Digital Asset Summit. Although the price trend may indicate short-term bearishness, Bitcoin bulls may see it as a long-term positive catalyst as the US government has shifted from the hostile attitude of the previous administration to a more friendly stance.
Similar price action played out during the much-anticipated launch of a U.S. spot Bitcoin ETF in January 2024. From October 2023 to January 2024, Bitcoin surged from $25,000 to $49,000, an increase of more than 40%. However, the launch of the ETF marked a local high, as prices fell 20% in the following weeks, ultimately hitting a new high of more than $73,000 in March. This time, after Trump won the U.S. presidential election in November, Bitcoin rose 60%, hitting an all-time high of $109,000 in January, and then experienced a nearly 30% correction. The common pattern in both cases is that positive news triggered a local high in the price of Bitcoin, followed by a major correction. The next variable is whether Bitcoin will start to rise after this correction ends, which depends largely on the macroeconomic environment. (CoinDesk)