Despite heading into the year with huge gains, the cryptocurrency market has witnessed a serious correction clouding a potential prolonged bull run in 2025. The emergence of Trump boosted investors’ confidence in the virtual assets sectors leading to a massive inflow.
During that run, BTC surpassed the $100,000 benchmark as the broader crypto market solidified its status as a trillion-dollar sector. However, since the turn of the year, the enthusiasm has cooled down due to various factors.
Notably, the release of low-cost Chinese artificial intelligence assistance, DeepSeeker in January caused major harm to the tech industry and the cryptocurrency market by extension. The launching of the tool triggered a massive wash-off in the United States market causing Nvidia to lose around $593 billion of its market value.
Further, Broadcom Inc (AVGO) lost 17.4% within 24 hours while Marvell Technology also dipped by 19.1%. Meanwhile, the cryptocurrency market also lost a signicant value within that period.
Bitcoin went down 8.15% within that period and Ethereum lost 14.45% in value too. Meme coin king Dogecoin suffered significantly during the run as the token plunged by 30.72%.
According to Coinglass, the general downturn claimed more than $544 million from the cryptocurrency market. The liquidation further propelled the digital assets market toward the bear run as investors are showing serious fears.
The bull run is already around considering the growing optimism around digital assets lately. To an extent, the Trump administration will play a crucial role in ushering in a positive price run in the cryptocurrency market.
Is There Hope For a Bull Run?
Under the new administration, the US cryptocurrency space is sparkling as a relaxed approach is boosting investors’ confidence. Recently, Binance.US resumed USDT deposit and withdrawal options after suspending the service due to a series of legal battles with the SEC.
Things have changed for good under Acting SEC Chairman, Mark Uyeda who commissioned a cryptocurrency task force. The task force consisted of some of the best staff from the agency including Hester Pierce, Richard Gabbert, and Taylor Asher.
The task force is commissioned to set the US SEC on the path to proper cryptocurrency regulation. Notably, the introduction of the proper regulatory framework will enhance the trust of investors in digital assets, causing tokens to rally high.
Furthermore, institutional investors also have a significant role to play in instigating a prolonged bull run. In the early stages of 2024, the introduction of BTC and ETH ETFs caused a huge inflow into the market, propelling top cryptocurrencies to rally.
Currently, the SEC is gearing up for a potential introduction of similar products for popular tokens like SOL and XRP. Additionally, the proposed Bitcoin Act will see the US accumulate a huge stack of Bitcoin.
Following the inauguration of Trump, various states in the US are making moves to set up strategic Bitcoin reserves. With the significant progress the legislation backing the investment plans is making, there are assurances that most of the reserves will come to life in 2025.
Beyond doubt, these occurrences will get the market back on its feet, supporting it to regain rapidly. This further fuels the assurances that the crypto market is set for a prolonged bull run during the year.
Parting Words
The cryptocurrency market without a doubt is enduring serious setbacks on major frontlines at the moment. Still, there are enough pointers to suggest that the sector will bounce back.
By that, the cryptocurrency market will fulfill the dream of every trader for a prolonged bull run. Amidst the growing hack and heavy liquidation, the crypto market still enjoys the support of the investing community.
This factor among other positive occurrences like the introduction of Trump’s Bitcoin Reserve, clear-cut regulatory framework, more crypto ETFs, and many others can set the market buzzing again. In addition, the resumption of the meme coin frenzy has a crucial role to play in pulling the bull run in 2025.
Positive developments like these will push whales into action which can trigger great movement within the market. At this bear run, investors can take advantage of the price dip and accumulate high-potential tokens at a low price entry.
With such an approach, investors stand a good chance to net explosive gains once the market starts recording green candles again.
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