HomeBlogBlogIs The Bitcoin Downturn A Big Bust Or A Cyclical Norm?

Is The Bitcoin Downturn A Big Bust Or A Cyclical Norm?

Anyone using our platform to trade cryptocurrency, or to convert it into fiat currency, will enjoy a wealth of opportunities to make smart trading decisions and then turn what was once a largely illiquid asset into a means of making regular transactions.

From our crypto cards to our crypto conversion platform with upward of 25 million pairs, these facilities enable you to make the most of your investments.

As some currencies rise and others fall, you also get the choice over whether to trade to maintain your wealth, hold on in anticipation of a long-term recovery, or cash in before the value of a declining currency falls further.

Many investors will be making such decisions now regarding Bitcoin, which has been the highest profile of all cryptocurrencies in the last 18 months, primarily due to the status conferred on it by Donald Trump.

Whatever Happened To Bitcoin’s Trump Boom?

Previously a crypto sceptic, Mr Trump switched to a pro-crypto stance in his 2024 election campaign and, in addition to appointing more crypto-friendly administrators to agencies like the Securities and Exchange Commission, established a federal Bitcoin reserve.

This prompted the ‘Trump Boom’ in Bitcoin, as its value soared past $100,000 for the first time, peaking at $126,000 last October.

However, since then, the currency has been in decline and, having plunged to $77,000, the gains recorded in the second Trump presidency have all been wiped out.

Since then, following what Forbes labelled “panic selling”, the value has dropped below $70,000. The report used words like “apocalypse” and “worst-case scenario” to describe the situation.

However, is this really the giant crash that brings Bitcoin to its knees? Or is it just another fall that will eventually be followed by a fresh rise in value to new record heights?

One argument would be that the currency has been too tied to Mr Trump’s fortunes and favours; that the boost it got from his election has been lost as the president’s popularity falls and geopolitical issues cause increasing global concern.

Is The Bitcoin Halving Cycle Dead?

An alternative might be to suggest this is a common feature of Bitcoin. In the past, it has had a pattern of three years of growth followed by one of steep decline, the so-called halving year.

However, the last of these halving years was in 2024, which suggests the steep decline that began in late 2025 and has continued into this year is severely out of kilter with it. This prompted Trading Key to ask the question: “Is Bitcoin’s four-year cycle dead in 2026?”

It could be that the pattern has been distorted only because Bitcoin achieved such prominence that it should gain the kind of attention President Trump gave it, creating an artificial boom. If so, this bubble has now burst.

That still leaves plenty of uncertainty over what will happen next:

·       Bitcoin may continue to decline this year as the midterm elections loom and Republican prospects look gloomy

·       Alternatively, an upturn in the administration’s fortunes may arrest the decline

·       There may be a decoupling of fortunes as the weaker value of Bitcoin means the administration downplays any association with it

·       Investors themselves may increasingly disregard any ‘Trump effect’ in their assessment of Bitcoin’s value

The latter case may be most likely, as the Trump effect is sure to diminish. This is not just because three years from now he won’t be president, but because, even if the ‘halving cycle’ pattern of the past has disappeared, that does not mean Bitcoin cannot recover over time.

What Options Do Investors Have?

However, with a trading platform that enables you to buy and sell so freely, you don’t have to gamble on one or other outcome for Bitcoin. There is always the option to diversify and while there will be times when some currencies perform poorly, others do well at the same time.

For example, Cryptolian recently highlighted the case of Mutuum Finance, which has gained over 300 per cent in value since the first quarter of 2025.

It observed: “Most of the best performing crypto assets are found much earlier than they enter their maximum utility window,” arguing that Mutuum Finance fits this pattern.

There are many different possible investor strategies for those with large Bitcoin holdings. These include:

·       Divesting in favour of established, well-performing cryptocurrencies

·       Investing in rising newcomers like Mutuum Finance

·       Diversifying your portfolio between established, rising and very new currencies

·       Holding all or most of your Bitcoin in anticipation of a longer-term recovery

These are just some of the different strategies investors may choose and there will be no shortage of experts offering advice. But whichever way you choose to go, our trading platform provides the means for you to go about enacting your strategy.

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