January Bitcoin Dips Are Just Part of the Halving Cycle — Analysts

Historically, the leading cryptocurrency has faced more pronounced corrections during similar periods in its market cycle.

In January 2021, Bitcoin saw a steep 25% drop, falling from over $40,000 to just above $30,000. However, this was followed by an impressive rally, culminating in an all-time high of $69,000 in November of the same year. A similar pattern unfolded in January 2017 when Bitcoin tumbled 30% but subsequently skyrocketed by 2,400% to $20,000 by December.

BTC dips in January are a typical post-halving trend. Source: Axel Bitblaze via X

Crypto analyst Axel Bitblaze commented on this recurring trend stating, “Bitcoin dumping in January has historically been a common occurrence in post-halving years. We all know what happened after the 2017 and 2021 dumps.” Spoiler alert – the price went up.

Bitcoin monthly chart highlighting RSI (color-coded) trends. Source: Stockmoney Lizards via X

Bitcoin, which peaked at $102,300 earlier this month, briefly fell to $92,000 before recovering to its current level of approximately $95,000. Despite the pullback, analysts emphasize that this correction pales in comparison to previous January declines.

Some market observers believe that Bitcoin has not yet entered its “ultimate hype/pump phase.” Stockmoney Lizards, a prominent market analysis account, remains optimistic about Bitcoin’s long-term prospects. “This cycle has more fuel in the coming 12 months,” an account said, referencing such catalysts as mass adoption, friendly legislation, and the general interest in Bitcoin spot ETFs. That, and the strong prospect of a Trump Pump.

Analysts note this pullback is mild compared to past January dips. Source: Axel Bitblaze via X

Particular attention has been brought to the introduction of spot Bitcoin ETFs as a game changer. Such funds are expected to lure large chunks of institutional capital, adding liquidity and stability to the crypto market.

In 2025, some key drivers for the crypto market include increased institutional adoption and progressive government policies, and President Trump’s support, providing a platform for more sustainable growth. This is also evident from the reports of some governments considering strategic Bitcoin reserves in an attempt to manage inflation—a move that would further cement the digital asset’s role as a hedge against economic uncertainty.

Bitcoin is up 5% over the last 24 hours. Source:Bitcoin Liquid Index (BLX) via Brave New Coin

Following historical patterns, Bitcoin could surge 130% later in the current cycle and may push its price past $200,000 by late 2025. Analysts warn that if the market follows the magnitude of previous January corrections, prices could fall further to around $70,000 before recovering.

The early slump in January looked quite alarming to some, but by history, it’s a natural course of a post-halving cycle. It will naturally be volatile in the short term but in a long-term trajectory upwards, encased by strides in adoption, regulatory clarity, and institutional interest. Investors and analysts alike are sure to keep their eyes glued to how 2025 unfolds with the potential for yet another landmark year for Bitcoin. For those investors asking if now is the time to buy Bitcoin, the best time was ten years ago, and the next best time is indeed now. While Bitcoin remains under $100,000, Bitcoin is a buy. We predict it will be back above $100,000 in a matter of days.