BTC Price Behavior Resembles Post-U.S. Bitcoin ETF Launch Trends, Sparking Déjà Vu: Van Straten

Bitcoin Slumps After Trump Inauguration, Repeating Post-ETF Launch Pattern

Is Bitcoin once again experiencing a “sell-the-news” downturn following a major U.S. event?

Since President Trump’s inauguration on January 20, Bitcoin (BTC) has fallen sharply from its record high of $109,000 to $80,000, extending losses after last Friday’s digital assets summit. The pullback follows a familiar pattern where major bullish events trigger a peak before a period of correction.

While the short-term outlook appears bearish, some Bitcoin investors remain optimistic about the long run. The shift from an anti-crypto U.S. administration to a more favorable one under Trump could provide regulatory clarity and institutional adoption. However, the current lack of strong buying interest suggests near-term weakness.

A similar trend played out in early 2024 when the approval of U.S. spot Bitcoin ETFs fueled a major rally. Between October 2023 and January 2024, Bitcoin soared from $25,000 to $49,000—an increase of more than 40%. However, the ETF launch marked a local top, with prices dipping 20% before rebounding to all-time highs above $73,000 by March.

Now, after Trump’s election victory in November, Bitcoin saw a 60% surge to $109,000 before pulling back nearly 30%. The recurring theme in both cases suggests that while bullish catalysts can drive significant rallies, they often lead to short-term corrections before the market finds its next direction.

The question now is whether Bitcoin’s current correction will set the stage for another rally. Market dynamics, macroeconomic conditions, and investor sentiment will play a crucial role in what happens next.

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