- The Bitcoin price crash has been sudden, catching many investors off guard.
- As the market braces for what’s next, stablecoins could be poised to step in.
The recent Bitcoin [BTC] crash has divided the market. Bulls argue it’s a “bear trap,” banking on a liquidity sweep to spark a recovery.
Meanwhile, fear is creeping in, with greed hanging by a thread.
As Q1’s volatility ramps up, will the “Trump pump” swoop in to save the day again, or is a deeper Bitcoin price crash inevitable?
Fear of Bitcoin price crash mounts
Bitcoin has slipped 9% in the last three days, leaving many to question if this is the start of a larger crash. And with the Department of Justice now cleared to sell $6.5 billion worth of BTC, the concerns are only intensifying.
Clearly, a surge in liquidity seems imminent, but with $568 million in outflows from BTC ETFs – the second major pull in under a month – a supply shock still feels far off.
Adding to the pressure, Binance’s stablecoin netflow has turned negative, with $383 million pulled off the platform.
In fact, given the macro factors at play, stablecoins could become the go-to “safe haven” for 2025 – something you’ll want to keep an eye on as things unfold.
Source: CryptoQuant
So, with retail and institutional investors in a holding pattern, fear is starting to mount. If this trend continues, Bitcoin may dip even further, potentially falling below the $90K mark in the short term.
However, the long-term outlook is still up in the air. Remember the “Trump pump” from Q4 last year that propelled BTC to an all-time high of $108K in just 60 days?
With Trump’s inauguration just ten days away, could a repeat of that rally spark fresh FOMO and breathe life back into the market?
It might be harder than it sounds
Looking at the bigger picture, there’s still a lot to unpack. The dollar index (DXY) shows no signs of easing, and Treasury yields are still in high demand.
As Bitcoin’s price crash stirs up fear, these traditional assets are poised to benefit.
But this could just be the tip of the iceberg. The Bitcoin-to-Gold ratio, which surged to a record 40 when BTC hit $108K, has now dipped below 35.
Source: LongTermTrends
While gold (XAU) has been relatively flat recently, a deeper Bitcoin price crash below $88K could change everything.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
Here’s why: With the U.S. dealing with rising debt and global inflation pressures, gold’s status as a safe-haven asset is more powerful than ever.
As market risks grow, investors are likely to turn to gold, potentially sidelining Bitcoin’s appeal as a store of value.
