Will History Repeat for Crypto Markets?
Analysts compare the current macroeconomic outlook with past cycles (especially the previous Trump-era trade war), and crypto markets and financial markets are experiencing a sense of déjàvu.
As traders and investors wait for their breath to get recycling in the cryptocurrency market, everyone’s eyes are related to the US dollar index (DXY) and M2 currency supply.
Bitcoin, Altcoins & Tariffs: Are 2017 style rally moving forward?
A recent chart from Zerohedge highlights how the 2025 dollar index (DXY) closely reflects its 2016 action. This increases the idea that market trends resonate with past patterns.
This similarity has attracted significant attention from investors, especially in the cryptocurrency space. Analysts evaluate whether Bitcoin (BTC) and Altcoins will follow a similar trajectory to their 2017 cattle cycle.
The Financial Markets Review (Kobeissi) letter discusses this discussion, highlighting the similarities Trump’s tariff war 1.0 and 2.0.
Comments acknowledge that today’s macroeconomic conditions are different from those of the former Trump administration. However, it also points out a few Technical movements in asset coursesincluding stocks, gold, oil and Bitcoin, are very similar.
Gold prices have soared more than 10% so far this year, reflecting the shift to safer assets. Meanwhile, Bitcoin fell nearly 10%. This difference emphasizes Risk appetite In shaping market sentiment.
Bitcoin’s recent price action further verifies these observations. On March 4, Bitcoin suddenly fell by $2,000 in just 25 minutes, close to the resistance level of $90,000. Market participants noted that even without material news, cryptocurrency valuations often shifted over $100 billion.
This shows this Mobility-driven motion Technical resistance levels play a major role in price fluctuations. In this regard, Kobeissi’s letter notes that long-term investors are leveraging volatility During the Trump trade war, 1.0 found excellent bargaining opportunities. This suggests that similar conditions may appear again.
Altcoin season in line with Trump season
Meanwhile, the growing narrative in the crypto space isAltcoin Season“Can be consistent with the “Trump Season.” Crypto Investor and Analyst Bitcoin Coindata21 highlights how Bitcoin’s price action in 2025 resembles the 2017 cycle. This observation reinforces the belief that major altcoin rally may occur.
Historical trends show that as capital rotates, strengthening the Bitcoin market is often before the explosive growth of altcoins. This increases the likelihood of an upcoming bullish cycle Mirror The altcoin boom seen during Trump’s first term.
Elsewhere, broader economic trends also indicate potential upside potential for Bitcoin. As Beincrypto reported, DXY has recently fallen below key support levelsHistorically, this is a bullish signal for Bitcoin. The weak dollar tends to push investors to alternative assets such as cryptocurrencies and gold.
In addition, analysts stressed Expand the M2 money supply As another factor that can aggravate Bitcoin rally. Historically, the expansion of M2 coincides with the operation of the major Bitcoin bulls, and experts predict growth in late March as liquidity conditions improve.
At present, due to macroeconomic factors and Policy changes. But history shows that investors strategically position themselves during turbulent times and often gain a lot of returns.
If the pattern repeated from 2017-2020 is followed, Bitcoin and altcoins may enter a new bull cycle in the coming months. However, traders should remain vigilant, as short-term volatility remains a key feature of the current market environment.
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