Bitcoin Drops After Trump Inauguration, Following a Familiar Market Pattern

Is Bitcoin once again caught in a classic “sell-the-news” scenario following a major U.S. event?

Since President Trump’s inauguration on January 20, Bitcoin (BTC) has declined from its record high of $109,000 to $80,000, extending its post-digital assets summit correction from last Friday. The sharp pullback follows a well-established trend where bullish news triggers short-term peaks before a significant retracement.

Despite the immediate downside, long-term Bitcoin supporters see potential for future growth. The new U.S. administration has taken a more crypto-friendly stance compared to its predecessor, a shift that could benefit digital assets in the long run. However, weak buying activity suggests continued short-term pressure on the market.

A similar pattern unfolded in early 2024 when the much-anticipated U.S. spot Bitcoin ETF approvals went live. Between October 2023 and January 2024, Bitcoin surged from $25,000 to $49,000, marking a 40% rally. However, after the ETF launch, Bitcoin experienced a 20% decline before eventually climbing to a new all-time high of $73,000 by March.

Now, after Trump’s election victory in November, Bitcoin surged 60% to hit $109,000, only to retreat nearly 30% in the following weeks. The pattern remains consistent—strong bullish catalysts often lead to local tops, followed by corrective phases.

The key question remains: Will Bitcoin recover and resume its upward momentum? The broader macroeconomic environment and investor sentiment will likely determine the next phase of price action.