Despite the crypto-friendly stance of Donald Trump’s administration, which raised high hopes among crypto-holding voters, the anticipated market impact has yet to materialize, even after several crypto-focused regulatory changes in the first 100 days.
Bitcoin remains stuck around $94,000 despite recent major developments in the crypto market and accelerating regulatory steps. While the long-awaited altcoin bull run has yet to appear, crypto industry stakeholders believe the current stagnation is not exclusive to digital assets but rather a broader trend affecting global markets. Many also expect established projects like Bitcoin to weather this period.
Bitcoin Struggles as Investors Shy Away from Risk
WhiteBIT TR Chairman Emre Yetiskin commented on the market situation, stating, “On February 17, U.S. markets were closed due to a public holiday, contributing to a weak start to the week. While Bitcoin has managed to hold the $93,000–$94,000 levels, analysts point to decreasing demand, falling risk appetite, weakening blockchain activity, and a lack of liquidity inflow into crypto.”
Bankrupt Crypto Exchange Repayments Increase Selling Pressure
Since November 2024, Bitcoin surged to $109,000, fueled by Trump’s continued crypto-friendly stance. During this period, spot crypto ETFs saw strong volumes, and the market attracted fresh liquidity. However, Trump’s tariff threats, particularly towards neighboring countries and key U.S. trade partners, led to pessimism across financial markets.
Highlighting the broader market slowdown, Yetiskin noted, “Investor sentiment fluctuates—sometimes they embrace risk, and other times they avoid it completely. Recently, we’ve seen gold, a traditional safe-haven asset, repeatedly hit record highs. Additionally, the Federal Reserve’s meeting minutes have indicated that inflation risks linked to tariffs have largely eliminated the likelihood of further interest rate cuts in 2025. These factors have created a period of uncertainty across global markets, not just in crypto.”
He also pointed out that one of the largest bankruptcies in crypto history, a 2022 event that shook investor confidence, has now led to $1.2 billion in repayments, increasing selling pressure. However, he emphasized that seeing victims of this collapse receive compensation is helping rebuild trust in the market.
Sideways Trading Frustrates Investors
Another market-moving event in recent weeks was the launch of meme coins by Donald Trump and later Melania Trump. Commenting on the impact, Yetiskin said, “When high-profile figures with significant public influence take action, the market reacts sharply. Trump’s $TRUMP token, for example, attracted billions in liquidity within days. However, the hype faded in less than two weeks. These extreme fluctuations also reduce investor interest in foundational projects like Bitcoin.”
Crypto investors are highly sensitive to sentiment shifts, often ignoring positive developments, he added. Despite progress on regulatory clarity—such as the appointment of David Sacks as the White House’s crypto policy lead, structural reforms at the U.S. Securities and Exchange Commission (SEC), an increase in SEC filings for altcoin-based ETFs, and growing institutional Bitcoin reserves—investors remain frustrated with the market’s sideways movement.
“Bitcoin and Leading Projects Will Overcome This Period”
Yetiskin reminded investors that crypto markets have experienced similar phases before, stating, “From a technical perspective, the $89,000 level is critical.”
“As the crypto partner of FC Barcelona and Trabzonspor, WhiteBIT TR closely monitors market trends and provides users with regular updates. Crypto asset markets should be evaluated with a long-term perspective, as they represent an innovative sector within the financial system. As a local crypto asset platform operating under Türkiye’s Capital Markets Board (SPK) regulations, we offer users early access to new listings and the ability to trade reliable crypto assets with TRY.”
He concluded by emphasizing the long-term potential of Bitcoin and leading crypto projects: “There are various analyses suggesting that Bitcoin and other pioneering crypto assets have the resilience to withstand market fluctuations and demonstrate long-term growth. However, crypto assets are highly volatile, and every investor should conduct their own risk assessment before making any decisions.”
Source: Foreks/ Prepared by: İlayda Gök