The cryptocurrency market experiences significant turbulence following Donald Trump’s recent inauguration. Initially, Bitcoin surged past $70,000 as investors anticipated Trump’s pro-crypto stance. Moreover, Trump’s administration has already established a cryptocurrency working group to develop new regulations.
What are the views of BlackRock and MicroStrategy?
BlackRock‘s CEO Larry Fink has engaged in discussions with sovereign wealth funds about Bitcoin investments. Furthermore, Michael Saylor‘s Microstrategy continues its aggressive accumulation strategy, adding 14,600 BTC since 2025 began. Meanwhile, Bitcoin ETFs have attracted $4.2 billion in inflows since Trump’s inauguration.
Financial Crisis in 2025?
Arthur Hayes, a key figure in the crypto world, has warned of an impending “financial crisis” that could prompt the Federal Reserve to introduce new stimulus measures.
“I am calling for a $70,000 to $75,000 correction in bitcoin [and] a mini financial crisis,” Hayes, a cofounder of BitMex posted to X.
Who are the Top Sellers?
Top sellers in the last 24 hours are exchanges like Binance, Coinbase, and Kraken, selling ahead of major events next week (PCE inflation, FOMC, GDP). Expect significant price drops this week with recovery by Friday or Saturday.
This raises concerns as exchanges selling in this way may be manipulating the market. Regulations should limit how much exchanges can sell at once to prevent long/short position manipulation. They have insider data to profit, which is problematic.
AI Competition Heats Up
Bitcoin’s price closely tracks the U.S. stock market, often aligning with high-growth tech stocks that surged alongside the AI boom since 2022. However, with DeepSeek now matching OpenAI’s performance while requiring fewer chips, risk concerns are rising.
“Risk-off is the theme as DeepSeek unsettles investors,” market analyst Adam Kobeissi posted on X, highlighting the recent crypto and bitcoin sell-off, including a 10% drop in Ethereum rival Solana.
DeepSeek’s rising popularity has triggered a broad market sell-off affecting both crypto and traditional markets. The Nasdaq 100 futures experienced a sharp decline as DeepSeek climbed to the top spot on the App Store. Therefore, investors are reassessing their positions in high-growth tech assets.
Federal Reserve’s Role
This week, the Federal Reserve is expected to keep interest rates unchanged at its first policy meeting since Trump took office on Wednesday, despite Trump expressing a desire for the Fed to lower rates.
“With oil prices going down, I’ll demand that interest rates drop immediately, and likewise they should be dropping all over the world,” Trump told attendees at the World Economic Forum last week.
The Federal Reserve maintains a cautious stance as it approaches its first policy meeting under Trump’s presidency. Nevertheless, Trump actively advocates for immediate interest rate reductions.
However, Hayes believes the Fed will resume “money printing that will send [the bitcoin price] to $250,000 by the end of the year.”
Alt coin season?
The crypto market is down, with major cryptos like XRP, ADA, PEPE, and LINK suffering losses. Bitcoin has already broken it’s critical support of $99,000, and if the bearish trend continues, it may dip further to $97,345 . However, Bitcoin ETFs have seen strong inflows, with $1B added since Trump’s inauguration, boosting investor sentiment. Despite this, Bitcoin struggles to establish a strong upward trend. The market is expected to remain volatile this week, with mixed sentiment among participants. This could signal the start of a delayed altcoin rally.
Looking Ahead: Market Expectations
Market participants anticipate increased volatility in the coming weeks as various factors influence prices. Currently, the bearish sentiment dominates short-term trading activities. However, long-term institutional support remains strong despite immediate selling pressure.
Written By Fazal Ul Vahab C H
