Introduction: The intense Fluctuation of Bitcoin prices

Recently, the price of Bitcoin has fluctuated dramatically, especially since the Trump administration took office. Since 2025, the price of Bitcoin has once dropped below historical highs, leaving many investors skeptical about the future of this digital asset. Despite the U.S. Securities and Exchange Commission (SEC) suspending investigations into major cryptocurrency exchanges after Trump issued a series of policies, market sentiment remains low, leading to a decline in the price of Bitcoin.

However, the Trump administration is not the sole reason; multiple internal and external factors together have driven market fluctuations. In particular, changes in investor sentiment have filled Bitcoin prices with uncertainty.

Trump's Policies and the Cryptocurrency Market

The support measures for the cryptocurrency industry by the Trump administration in 2025 are seen as a "gift." The White House has issued an executive order aimed at enhancing the United States' leadership position in the digital asset field, further promoting the adoption of Bitcoin. At the same time, the Trump administration also indicated its intention to establish a Bitcoin reserve, which has brought positive market signals to the cryptocurrency industry.

However, the support of the Trump administration did not push the price of Bitcoin up as strongly as expected. Negative sentiment still exists in the cryptocurrency industry, partly due to Trump's other policies, such as imposing high tariffs on global trading partners, leading to market confidence being undermined.

Image:https://www.gate.io/trade/BTC_USDT

The price of Bitcoin recently rose to around $95,000 and then fell back to below $80,000. As of the writing of this article (12:00 on March 5, 2025 (UTC+8)), the price is around $87,000. Bitcoin has experienced significant fluctuations recently, so please trade cautiously and be aware of the risks.

Reasons for the decline in Bitcoin price

Internal Factor: Self-inflicted Wounds in the Cryptocurrency Industry

The decline in the price of Bitcoin is not only caused by external factors, but internal factors also play a crucial role. The turbulence in the cryptocurrency industry, especially the controversy triggered by meme coins, has severely affected market sentiment. For example, the rise of meme coins such as $MELANIA and $LIBRA has sparked widespread questioning and mistrust. Some investors believe that meme coins do not have long-term value, and their prices fluctuate greatly, thereby negatively impacting the entire crypto market.

GSR research director Brian Rudick pointed out that the rise of meme coins was once seen as the fairest and most efficient form of speculation in the cryptocurrency market, but with the failure of multiple meme coins, market confidence began to decline. As a result, the price of Bitcoin was also dragged down, leading to outflows of funds from the market.

External factors: global economic environment and political situation

In addition to internal factors within the cryptocurrency industry, the global economic environment and political situation have also impacted the price of Bitcoin. The trade policies of the Trump administration have increased uncertainty in the global economy, reduced consumer confidence, and consequently affected investors' demand for Bitcoin. Furthermore, a North Korean hacker attack on the cryptocurrency exchange Bybit resulted in the theft of $1.5 billion, raising doubts about the security of cryptocurrencies.

These events have amplified market uncertainty, putting pressure on the price of Bitcoin. Against the backdrop of global economic weakness and geopolitical instability, investors' preference for risk assets has declined, weakening the potential for cryptocurrencies to serve as a safe haven.

Market sentiment and the future trend of Bitcoin

Fluctuation in investor sentiment

The dramatic fluctuations in the price of Bitcoin reflect changes in market sentiment. Although the value of Bitcoin does not solely depend on traditional market supply and demand, it is still influenced by investor sentiment. When investor sentiment is positive, the price of Bitcoin tends to rise; but when market sentiment turns negative, the price of Bitcoin will fall.

Currently, the price of Bitcoin is in a downward trend, and investors' confidence has not been restored, leading to further price decline. However, the market has not reached a state of widespread panic, and the VIX volatility index has not shown a sharp increase, indicating that there may still be further downside potential for the price of Bitcoin.

Bitcoin price prediction and potential rebound

Despite the current softness in Bitcoin prices, investors still have expectations for its future based on technical analysis. Steve Sosnick, Chief Strategist at Interactive Brokers, pointed out that Bitcoin may continue to decline, especially when it breaks below the key support level of $80,000, the next support range may appear between $60,000 and $70,000.

Summary

Many market experts believe that 2026 may be a key time for the recovery and growth of the cryptocurrency market. Although the policies of the Trump administration have had an impact on the cryptocurrency market, the current market environment is still full of challenges. It may take longer for legislation and market structure to be improved, and it is expected that a more stable and sustainable market growth will not appear until 2026. Overall, the future trend of Bitcoin prices is still full of uncertainties. Investors should closely monitor global economic trends, government policies, and changes within the cryptocurrency industry in order to respond promptly to major market changes.