CoinGlass market data shows that Bitcoin has declined again over the past 24 hours, falling below $100,000 per coin. At the time of writing, Bitcoin is trading at $99,290, down over 2% for the day. Most other cryptocurrencies also saw declines, with Ethereum dropping over 6%, Dogecoin falling more than 8%, and TRUMP plummeting over 12%.
Market Reaction to New U.S. Crypto Policies
According to Securities Times, analysts note that while President Trump fulfilled his campaign promises by introducing policies supporting cryptocurrencies, the market response has been mixed. Given Bitcoin's substantial gains over the past year, further positive catalysts are needed to sustain momentum.
On January 20, Trump officially took office and signed an executive order to establish a presidential working group. This group will coordinate clear regulations for the digital asset industry and ban the creation of Central Bank Digital Currencies (CBDCs). Chaired by David Sacks, the task force includes representatives from key federal agencies like the Treasury, Justice Department, SEC, and CFTC.
Key Policy Timelines:
- 30 days: Identify all existing crypto-related regulations and guidance.
- 60 days: Propose recommendations for these policies.
- 180 days: Submit a final report to the president, including legislative proposals.
However, the administration did not immediately authorize a "National Strategic Bitcoin Reserve," as Trump had hinted during his July campaign. Instead, the working group will evaluate the feasibility of a broader "National Digital Asset Reserve," potentially including cryptocurrencies seized through law enforcement.
Industry Leaders Weigh In: 2025 Price Predictions
Binance CEO Richard Teng predicts Bitcoin could reach new all-time highs in 2025, driven by U.S. regulatory clarity and bipartisan crypto support in Congress. He emphasized:
👉 How regulatory shifts could boost Bitcoin's growth
Arthur Hayes, BitMEX co-founder, warns of a short-term correction:
"Bitcoin may drop to $70,000–$75,000 amid a minor financial crisis. Once global central banks resume quantitative easing, prices could rebound to $250,000 by year-end."
International analysts cited by Xinhua Finance project Bitcoin could hit $200,000 by late 2025.
Risks Behind the Volatility
Yu Jianing, Chairman of the Blockchain Committee at China Communications Industry Association, highlights the dangers of high leverage in crypto markets:
"When bullish sentiment peaks, investors often overleverage. Sudden reversals can trigger cascading liquidations and panic selling."
Zhao Wei, Senior Researcher at OKX, adds:
"Bitcoin’s near-term trajectory depends on how quickly investors digest news and how major economies adjust monetary policies. Expect heightened volatility."
👉 Why Bitcoin's volatility demands caution
FAQ Section
Q1: Why did Bitcoin drop below $100,000?
A: Market disappointment with U.S. crypto policies falling short of expectations, combined with profit-taking after a prolonged rally.
Q2: What’s the long-term outlook for Bitcoin?
A: Experts remain bullish for 2025, citing regulatory progress and macroeconomic factors, but warn of short-term turbulence.
Q3: How does leverage amplify crypto risks?
A: High leverage can magnify gains but also lead to rapid losses during price swings, triggering mass liquidations.
Q4: Should investors buy the dip?
A: While long-term potential exists, assess risk tolerance and market conditions before entering during volatile periods.