- Bitcoin prices have seen significant fluctuations in 2025, reaching all-time highs earlier this year, with possibilities of experiencing its first annual decline since 2022.
- Experts attribute these fluctuations to Bitcoin's correlation with movements in the US stock market, US government monetary policies, concerns related to artificial intelligence company stock bubbles, and a spike in gold prices.
- Bitcoin price today stands at around $90,500, marking a decrease of approximately 29% from its all-time highs.

Bitcoin Prices Rally and Trump Tariffs
Bitcoin prices surged at the beginning of the year amidst a wave of optimism following the election of US President Donald Trump, known for his support of digital currencies. However, Trump's economic policies significantly impacted the markets, including digital currencies. His decision to impose new tariffs in April led to a sharp decline in Bitcoin prices before recovering and hitting a new record level above $126,000 in early October.
Unfortunately, the rally was short-lived as Trump once again announced new tariffs on Chinese imports and threatened to impose restrictions on exporting sensitive software. This triggered a selling wave exceeding $19 billion in leveraged long positions, marking the largest in the history of the digital currency market.

Gold Shines Bright and Pressures Bitcoin
The recent surge in gold contributed to the pressure on Bitcoin as increased demand for traditional safe havens led to a liquidity outflow from high-risk assets. Reports from Bloomberg and Reuters indicate that the SPDR Gold Shares ETF, the largest gold-backed exchange-traded fund, witnessed strong positive inflows in March. Meanwhile, traded cryptocurrency funds experienced liquidity outflows as the price of gold surpassed $3,000 per ounce in mid-March, indicating growing demand for the metal as a safe haven amidst uncertain markets. Prices jumped to record levels this month, almost reaching $4,254.93 per ounce.

Ties to Stock Market
The declines in April and October demonstrated an increased correlation between Bitcoin and stock markets, especially in artificial intelligence stocks, which faced pressure amid fears of entering bubble valuation territory. While historically Bitcoin and stocks did not move in the same direction, considering cryptocurrencies as an alternative investment, wider adoption of digital currencies by individual investors and some institutions strengthened this correlation.

High Sensitivity to Interest Rates
Cryptocurrencies have become more sensitive to interest rate movements, despite no definitive historical link between rising Bitcoin prices and interest rate cuts. However, the market tends to react positively to any signals of monetary policy easing by the Federal Reserve.
Upended Expectations
Traders, in the past week, placed a 15% probability on Bitcoin closing the year below $80,000, compared to 20% in the previous weeks, disappointing optimistic investors. Michael Saylor, the co-founder of MicroStrategy, the world's largest Bitcoin-holding company, expected Bitcoin to reach $150,000 this year by October 30. Reports from Standard Chartered suggested Bitcoin could rise to $200,000 by the end of 2025. However, the tone shifted later, warning of a potential "long winter" in the market. Standard Chartered also revised its expectations to Bitcoin falling below $100,000.