empty
19.02.2025 10:30 AM
Why Is the Cryptocurrency Market Under Pressure? (Potential Bitcoin Rise and Litecoin Decline)

If we look at the performance of major cryptocurrencies, their last notable price surge against the US dollar was observed at the conclusion of the US presidential election campaign.

Many tokens nearly doubled in price in anticipation of Donald Trump's decisive victory, reflecting expectations of a shift in the US economic policy paradigm. This excitement was further fueled by reports that Trump himself had launched a cryptocurrency project.

With the election of the 47th president and his statements on the future role of cryptocurrencies in the national economy, crypto traders became noticeably optimistic, actively accumulating tokens in the hope that other market participants would follow. However, the situation turned out to be more complex. The market has not yet signaled further price increases; instead, many traders used Trump's victory as an opportunity to lock in profits.

While some market participants are trying to hold Bitcoin and Litecoin near their recent highs, the overall picture suggests that broad-based catalysts for further growth are currently lacking. Until more favorable conditions emerge, cryptocurrencies are likely to trade within sideways ranges.

Why Is the Crypto Market Behaving This Way?

It's no secret that cryptocurrencies are now effectively traded against the US dollar, which means their performance is largely influenced by the dollar's dynamics against other currencies.

Both Bitcoin and Litecoin have recently shown a clear correlation with movements in the US dollar. While local factors—such as the conclusion of the US election and Trump's pro-crypto rhetoric—have played a role, the primary driver behind the stalling of the rally appears to be Trump's concern over the global role of the US dollar.

Trump has expressed a desire to preserve the dollar's influence, which was reportedly a topic of discussion during his recent call with Russian President Vladimir Putin. The US economy relies heavily on maintaining at least significant dominance of the dollar in global trade and finance. Therefore, it is unlikely that Trump would actively promote cryptocurrency adoption at the expense of the dollar. This represents a key fundamental constraint on further token appreciation.

Another major factor is the expectation that Trump's policies favoring import restrictions will strengthen the dollar. The recent rise in inflation data makes it unlikely that the Federal Reserve will continue cutting interest rates in the near term. A stronger dollar typically weighs on Bitcoin and other digital assets, but the uncertainty surrounding Trump's political and economic strategy has left investors hesitant. The key question remains: when will this uncertainty end? That is something no one can answer definitively.

For now, sideways movement is likely to continue in the crypto markets, with sporadic price spikes in both directions.

Market Forecast

This image is no longer relevant

This image is no longer relevant

Bitcoin

The token is trading within a narrow range, impacted by the factors discussed above. Moving between $93,970 and $98,476, Bitcoin could see some local support and push toward the upper boundary, but overall, it is likely to remain range-bound for some time.

Litecoin

Litecoin is also trading in a range, though wider at $96.85–$137.50. For now, it appears stuck within this zone. A failure to break above the upper boundary could lead to a local reversal and a decline toward the lower end of the range.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The ECB May Cut Interest Rates Twice

The euro is showing a sharp rally against the U.S. dollar. The EUR/USD pair has already reached a three-year high and shows no signs of slowing down. Meanwhile, according

Jakub Novak 12:42 2025-04-11 UTC+2

AUD/USD. Analysis and Forecast

The AUD/USD pair is attempting to attract buyers in its rebound from the psychological level of 0.5900, marking its lowest point since March 2020. The upward momentum has managed

Irina Yanina 12:39 2025-04-11 UTC+2

Markets Face a Prolonged Period of Instability (USD/JPY and USD/CHF Likely to Continue Falling)

On Thursday, investors realized there is currently no such thing as stability. High market volatility remains and will continue to dominate for some time. The ongoing cause of this remains

Pati Gani 09:11 2025-04-11 UTC+2

The Market Has Grown Used to Chaos

What is life if not a game? In past years, investors focused on the standoff between the Federal Reserve and financial markets. But in 2025, the rules of the game

Marek Petkovich 08:42 2025-04-11 UTC+2

What to Pay Attention to on April 11? A Breakdown of Fundamental Events for Beginners

A relatively large number of macroeconomic events are scheduled for Friday, but none are expected to impact the market. Of course, we may see short-term reactions to individual reports

Paolo Greco 06:04 2025-04-11 UTC+2

GBP/USD Overview. April 11: The Market Didn't Believe Trump

The GBP/USD currency pair also traded higher on Thursday. As a reminder, macroeconomic and traditional fundamental factors currently have little to no influence on currency movements. The only thing that

Paolo Greco 03:28 2025-04-11 UTC+2

EUR/USD Overview. April 11: The American Comedy Continues

The EUR/USD currency pair declined sharply overnight on Wednesday but showed some recovery during the day. On Thursday, there was further growth—this series of fluctuations can only be described

Paolo Greco 03:28 2025-04-11 UTC+2

Trading Recommendations and Analysis for GBP/USD on April 11: The Dollar Takes a Double Hit

The GBP/USD currency pair also showed strong growth on Thursday, although not as strong as the EUR/USD pair. The pound gained only around 200 pips—which isn't a considerable move under

Paolo Greco 03:28 2025-04-11 UTC+2

EUR/USD. A Message from the Past: U.S. CPI Report Fails to Support the Dollar

The CPI report released on Thursday showed weaker-than-expected inflation. The market responded accordingly: the U.S. dollar came under renewed pressure (the U.S. Dollar Index fell into the 100.00 range)

Irina Manzenko 00:47 2025-04-11 UTC+2

The Euro Charges Ahead. Opponents Retreat

A rally in European stock indices, slowing U.S. inflation, and the fact that the average U.S. tariff has not changed significantly despite the 90-day deferral all contributed to the rise

Marek Petkovich 00:47 2025-04-11 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.