Bitcoin has declined nearly 20% over the past three months, despite initial optimism following Donald Trump's return to the White House. The cryptocurrency's performance reflects broader macroeconomic pressures, including interest rates and dollar liquidity, rather than regulatory changes. According to eToro, Bitcoin is increasingly trading as a high-liquidity risk asset, influenced by global liquidity cycles and investor risk appetite.
While expectations of a more crypto-friendly political environment initially buoyed Bitcoin, the market has been driven by macro factors. Gold and silver have outperformed Bitcoin over the past year, attracting safe-haven flows. The analysis suggests that supportive crypto policies may have a gradual impact, but macroeconomic conditions remain the primary drivers of Bitcoin's near-term performance.
Bitcoin Falls 20% Amid Macro Pressures, Gold Outperforms
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