The cryptocurrency market is undergoing a phase that is testing the extreme patience of investors. Bitcoin, the leading currency in the market, is nearing a dismal record: a chain of 5 consecutive months of price declines – something that has only happened once before in 2018. From a record high of over 126,000 USD, Bitcoin has slid down to the 65,500 USD range, which corresponds to a decrease of 48%. $AMZNon
The pressure from tariff policies and legal conflicts
One of the "cold water splashes" hitting the market in recent days is the information about tariffs. Although the U.S. Supreme Court previously rejected earlier proposals, Trump's threat to impose a 15% global tariff has spread a "risk-off" sentiment. Bitcoin, which is sensitive to liquidity flows, immediately reacted negatively.
Moreover, the stagnation of the Clarity bill – an important legal framework for the crypto market structure in the U.S. – is creating fatigue among investors. Although experts remain optimistic about the chances of passing it by the end of April, the prolonged wait has made large capital flows more cautious than ever. #Colecolen
Concerns from the AI wave and skepticism about "digital gold"
Not only is Bitcoin under pressure from politics, but it is also being affected by concerns about the explosion of Artificial Intelligence (AI). Some research reports warn that if AI continues to replace intellectual labor on a large scale, consumer purchasing power will decline, leading to slower economic growth.
In particular, the inverse correlation between Gold and Bitcoin in the past 5 months has shaken the argument that "Bitcoin is digital gold." While Bitcoin has lost nearly half of its value, Gold has grown by 24%, attracting capital flows seeking true safety against the specter of currency devaluation. $BTC
The 4-year cycle and the market cleansing problem
Many investors fear that Bitcoin's 4-year cycle is repeating the scenario of previous declines after Halving. The market's becoming "institutionalized" with the participation of large funds does not seem to eliminate the cyclicality but rather makes the adjustment phases occur more violently due to high financial leverage.
However, from a positive perspective, this is a necessary phase to "cleanse" the ecosystem. As speculative activities gradually fade, the market will have to focus on fundamental factors such as real-world applicability and sustainable economic infrastructure. This is a phase that supports and accompanies real values rather than virtual waves.
Risk warning: The market is in an extremely high sensitivity state to macro news and tariffs. You should absolutely not use excessive leverage during this period. Prioritize capital preservation and only invest when legal signals from the U.S. become clearer.