Ella Mitchell 
Bitcoin Drops as Market Reacts to Political Shifts and Historical Trends
Bitcoin has once again witnessed a 13% drop in just 50 days, following an initial surge after Donald Trump’s second-term inauguration in 2023. Historical data from CryptoRank highlights a striking similarity between Bitcoin’s current price movements and those observed during Trump’s first term in 2017.
Despite this early setback, long-term investors remain optimistic, as Bitcoin’s price history suggests a strong recovery following initial post-inauguration declines. With Bitcoin drops mirroring previous trends, analysts anticipate a potential bullish rally in the months ahead.
As of March 11, 2025, Bitcoin’s price continues to follow its 2017 market pattern, reinforcing expectations of a market rebound. Investors are closely monitoring whether Bitcoin will replicate its past performance, setting the stage for significant upside potential.
Bitcoin Drops and Recovers: Comparing Trump’s First and Second Terms
In the first 100 days of Donald Trump’s second term, Bitcoin has followed a familiar price action pattern. Looking back at Trump’s first term in 2017, Bitcoin initially surged by 23.2% in the first few weeks before experiencing a 13.5% decline shortly thereafter.
Similarly, during Trump’s second term, Bitcoin initially climbed before facing a 13% decline, mirroring its past behavior. This trend strongly suggests that Bitcoin drops following U.S. political transitions may be short-lived, paving the way for future price rebounds.
Key Observations:
- Bitcoin surged 23.2% in early 2017, followed by a 13.5% drop, before rebounding strongly.
- In 2025, Bitcoin drops 13% again, maintaining historical consistency.
- Bitcoin’s market trends indicate that such post-inauguration declines often precede significant bullish reversals.
Why Bitcoin Drops During Political Transitions
The relationship between Bitcoin and U.S. political cycles is well-documented. Investors often turn to Bitcoin as a hedge against macroeconomic uncertainty, but early-term policy shifts and investor caution can lead to short-term price fluctuations.
Market uncertainty surrounding fiscal policies, inflation control, and regulatory measures under Trump’s second term may have triggered the recent Bitcoin drop. However, based on past market behavior, these corrections typically give way to substantial gains in the long run.
Defining the Recovery Road: Will Bitcoin Rebound?
Despite Bitcoin dropping 13% in the first 50 days of Trump’s second term, market analysts point to historical data supporting a significant recovery. If Bitcoin follows its 2017 price movement, the cryptocurrency could be on track for a 56.8% rally within the first 100 days of Trump’s presidency.
Historical Recovery Trends:
- After a 13.5% decline in 2017, Bitcoin rebounded by 56.8% within the next few months.
- In 2025, Bitcoin drops 13% again, suggesting another potential breakout ahead.
- If history repeats, Bitcoin could see a major price increase in the coming months.
With Bitcoin currently navigating post-inauguration market dynamics, long-term investors see this as a buying opportunity, betting on Bitcoin’s historical resilience.
Bitcoin Drops and Investor Sentiment: What to Expect Next?
For investors, Bitcoin drops during political transitions appear to be part of a long-term price cycle, rather than a sign of sustained weakness. Analysts suggest that Bitcoin’s price action under Trump’s presidency follows a pattern that aligns with past political and economic cycles.
What This Means for Investors:
- Short-term volatility is expected but could lead to long-term gains.
- Bitcoin historically rebounds after similar price corrections.
- A potential 56.8% breakout remains on the table if historical trends hold.
If Bitcoin’s price movement mirrors previous cycles, investors may witness another rally forming, making the current price level an attractive entry point for long-term buyers.
Final Thoughts: Will Bitcoin Recover from Its Recent Drop?
While Bitcoin drops 13% in the first 50 days of Trump’s second term, historical data suggests that this is not unusual and could signal a major recovery ahead. As Bitcoin follows past market cycles, investors remain cautiously optimistic about an upcoming price surge.
