
Bitcoin and crypto market going to crash in 2025?
The recent price surge of Bitcoin has ignited hope among investors, with the Trump Trade sentiment driving risk-on behavior. However, historical data suggests a different narrative.
A closer look at chart analysis reveals profit-taking signals, macroeconomic volatility, and on-chain data that paints a picture of fragility in the market.
Historical patterns indicate that when Short-Term Holders (STH) realize profits, it can signal the beginning of another corrective phase. Currently, STH appear to be cashing in their gains as Bitcoin nears $80,000. If this trend continues and intensifies, it could be the harbinger of a significant downturn.
Furthermore, exchange inflows have historically preceded market tops and subsequent crashes. The recent surge in exchange inflows adds weight to concerns about potential profit-taking and growing instability in the market.
Adding fuel to the fire is the impact of the Trump Trade effect on crypto markets. While optimism fueled by the Trump Trade has driven a price increase for Bitcoin, macroeconomic fundamentals remain precarious.
Historical data indicates that such market conditions can cause sell-offs as investors seek safer assets.
Source: coinchapter.com