Bitcoin experienced a notable decline in early 2025, dropping from above USD 109,000 in January to below USD 77,000 in March before recovering to a certain extent.
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The cryptocurrency reacted to several key factors, rooted in macroeconomic policies and market sentiment.
A primary catalyst was escalating US trade tensions under President Donald Trump. The continuous change in policy affected sentiment and risk appetite.
These measures triggered sell-offs in US equities, which spilled over into crypto markets. Bitcoin, increasingly correlated with risk-on assets, felt the ripple effect as investor confidence waned.
The market also reacted to the changing policy landscape. President Trump signed an executive order establishing a national Bitcoin reserve. Hailed as a potential demand booster, the order disappointed markets when no immediate purchases followed.
Security concerns have also played a role in the market’s recent performance, with a significant hack on crypto exchange Bybit by the North Korean Lazarus group dampening investor confidence.
For traders navigating this challenging environment, secure brokers like Naga offer essential tools to manage risk and potentially profit during market downturns. The platform’s Autocopy Trading System allows users to follow strategies from experienced traders, while advanced risk management tools like the NAGA Protector system help minimize losses automatically. By leveraging these specialized features, traders can work to transform market challenges into opportunities while protecting their investments during this period of uncertainty.
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