FBS, a leading global broker, presents its latest market analysis exploring the recent Bitcoin downturn and the broader outlook for the cryptocurrency market in 2025. Despite a 28% price drop since the beginning of the year, FBS analysts suggest the current market phase is part of a broader correction and potentially an early stage of a strong rally.
Following Donald Trump’s return to the US presidency in January 2025, optimism surged across crypto markets. However, heightened geopolitical tensions, particularly renewed trade war threats, caused a shift in investor sentiment. As long positions closed and volatility increased, Bitcoin faced a temporary decline.
FBS experts point out that this pattern has been seen before. A similar drop occurred during Trump’s first presidency in 2018, followed by a strong recovery driven by monetary easing. The Federal Reserve’s anticipated rate cuts in 2025 could again provide fertile ground for crypto growth. Lower interest rates, a weakening dollar, and increased liquidity typically encourage investment in higher-risk assets like Bitcoin.
Technically, Bitcoin continues to respect its long-term trendline. Positive signs, such as tariff easing talks with Japan, suggest market sentiment may soon shift. If the trend holds, FBS forecasts a return to key levels, with Bitcoin potentially testing $100 000 in the mid-term, and reaching up to $150 000 should liquidity conditions improve further.
The altcoin market mirrors this potential. Though currently consolidating, the market cap of altcoins may recover from $810 billion back toward its previous high of $1.62 trillion as investor confidence returns.
FBS analysts interpret recent market behavior as a measured correction within an overarching upward trend. They note that historical patterns, sustained institutional interest, and Bitcoin’s positioning as a “digital gold” asset contribute to perspectives on its long-term value.
