TechFlow news, March 10 — CoinDesk analyst James Van Straten said that although the market shows short-term bearish characteristics, the U.S. government's positive shift in stance toward digital assets could bring long-term benefits for Bitcoin.
Bitcoin's price has dropped from $109,000 to $80,000 since President Trump's inauguration on January 20, exhibiting a classic "sell the news" pattern.
This price movement resembles the situation following the launch of U.S. spot Bitcoin ETFs in January 2024. At that time, Bitcoin rose over 40% from October 2023 to January 2024, but experienced a 20% pullback after the ETF launch. Similarly, after Trump won the election, Bitcoin surged 60%, reaching a record high of $109,000, followed by a nearly 30% correction.
Analysis shows both events follow a similar pattern: bullish news triggers a local price peak, followed by a significant pullback. Despite the short-term bearish signals, the U.S. government's increasingly favorable attitude toward digital assets may create long-term tailwinds for Bitcoin.
