Bitcoin (BTC) is experiencing a notable correction in the first month of 2025, echoing similar patterns observed in previous post-halving years. According to analysts, these price dips have historically been a recurring trend after Bitcoin’s halving events, which reduce the reward for mining new blocks, typically followed by heightened price volatility.
Crypto analyst Axel Bitblaze, with over 123,000 followers on X, shared his insights on January 12, highlighting that Bitcoin’s January dumps are not out of the ordinary following halving events. “We all know what happened after the 2017 and 2021 dumps,” Bitblaze commented, referencing previous cycles where Bitcoin prices faced significant corrections before rebounding sharply.
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— Axel Bitblaze 🪓 (@Axel_bitblaze69) January 12, 2025
➔ 1. Bitcoin January Dump:
BTC dumping in January has historically been a common occurrence in post-halving years.
In January 2017, BTC dumped from $1,185 to $800.
In January 2021, BTC dumped from $42,000 to $28,000. pic.twitter.com/nRn4q64aYL
This year, Bitcoin has already dropped 10% in January, falling from a high of $102,300 on January 7 to around $94,000. In comparison, January 2021 saw Bitcoin lose more than 25%, plummeting from over $40,000 to just above $30,000. However, it surged back later in the year, ultimately reaching an all-time high of $69,000 by November. Similarly, in January 2017, after the 2016 halving, Bitcoin dropped 30% but skyrocketed 2,400% throughout the year, culminating at $20,000 by December.
Crypto analyst Crypto Rover pointed out that Bitcoin’s correction this January is mild compared to past cycles. “This is just a small dip compared to what we’ve seen before,” Rover noted, emphasizing that Bitcoin has not yet entered its ultimate “hype/pump phase.”
Stockmoney Lizards, another well-known finance account, believes that with the increasing global adoption of Bitcoin, pro-crypto governments, and the growing presence of Bitcoin ETFs, there’s still significant upside potential. Some analysts speculate that Bitcoin could see a 130% price surge, taking BTC above $200,000 by the end of 2025. However, others caution that a repeat of the pullbacks seen in previous cycles could bring prices below $70,000.
Also Read: BlackRock’s Bitcoin Selling Spree Sparks Market Volatility: $12.4M BTC Offloaded
As the market continues to react to these historical trends, Bitcoin’s future remains highly unpredictable, with both bullish and bearish scenarios on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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