Bitcoin Price Slowdown Tied To U.S. Sentiment – Metrics Reveal Fundamentals Remain Strong

Bitcoin is once again trading below the $85,000 mark after a series of wild price swings that have left investors uncertain about its next move. Market volatility surged following President Trump’s announcement that he plans to establish a U.S. strategic crypto reserve, sparking a brief rally that pushed BTC to $95,000 in just hours. However, the momentum was short-lived, as Bitcoin quickly retraced the entire jump, bringing prices back down and reinforcing the ongoing instability in the market.

This rollercoaster price action reflects the current uncertainty surrounding Bitcoin, with traders struggling to determine whether BTC is gearing up for another leg higher or facing further downside pressure. While Trump’s pro-crypto stance briefly lifted sentiment, it wasn’t enough to sustain a breakout, highlighting weakness in overall market conditions.

CryptoQuant CEO Ki Young Ju weighed in on the situation, stating that Bitcoin’s market conditions will likely remain slow until sentiment in the U.S. improves. With regulatory concerns, macroeconomic uncertainty, and shifting investor sentiment, Bitcoin’s ability to sustain higher levels remains in question. Until stronger catalysts emerge, BTC may continue trading in a volatile, range-bound environment, leaving traders watching for the next decisive move.

Bitcoin Indicators Suggest Bull Cycle Is Still Intact

Bitcoin has struggled below the $90,000 level for days, and now it finds itself even failing to hold above $85,000. The lack of momentum has kept BTC in bearish territory, with bulls needing to step in soon to avoid a deeper decline. Despite several attempts at recovery, Bitcoin and the entire crypto market remain under pressure, unable to confirm a sustained push higher.

Bulls lost control when BTC dropped below $90,000, and the failure to reclaim this zone has intensified bearish sentiment, leading many analysts to call for a potential bear market.

However, Ju believes the bull cycle isn’t necessarily over. His analysis highlights that on-chain activity remains insignificant, and key indicators are neutral, suggesting that the broader bull trend is still intact despite recent weakness. Additionally, fundamentals remain strong, with more mining rigs coming online, signaling continued confidence from major players.

Ju also points out that if this cycle were to end here, it would be an unwanted outcome for nearly all major stakeholders—old whales, mining companies, traditional finance (TradFi), and even Trump’s pro-crypto stance. Retail traders, often seen as late-cycle participants, are unlikely to influence the market’s direction at this stage.

For now, Bitcoin remains at a pivotal moment, with the next few days being crucial for determining whether BTC can reclaim lost ground or if further downside is inevitable. A break below key support levels could confirm a prolonged correction, while a strong recovery could reignite the uptrend.

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