- Bitcoin retraced from $100K to $50K in early 2025 but recovered to $90K, showing resilience after major external shocks.
- BTC’s long-term structure mirrors past cycles as fear and euphoria align with key levels, setting the stage for further upside.
- From geopolitical tensions to exchange hacks, Bitcoin has weathered major events yet maintains a bullish trend through 2025.
The Bitcoin cycle 2021 to 2025 is dominated by a strong historic pattern created through both macro events and in-cycle market mechanisms. Recent analysis by Stockmoney Lizards refers to the direction of how traders normally get it wrong in assuming the impact of the Federal Reserve on prices. Rather, the BTC chart is one defined by investor sentiments and conventional market psychology. In May 2025, Bitcoin trades at approximately $90,000 following a health correction from new all-time highs above $100,000 earlier this year.
Bitcoin experienced several high-impact events throughout this period. The first major breakdown came in early 2022 due to Russia-Ukraine tensions. This incident triggered a prolonged bear market that lasted the rest of the year. Then, the infamous FTX collapse in late 2022 marked the market bottom, with BTC plunging near $15,000. That crash set the stage for a two-year bull run beginning in early 2023.
Bull Run Accelerates Despite Setbacks
In 2023, Bitcoin entered into a subdued uptrend fueled by optimism within the market and increasing institutional exposure. Prices climbed steadily from below $20,000 to over $60,000 in 12 months. A “Black Monday” correction in the rally in mid-2024 was short-lived, however. It did not hold off bulls long, though. By early 2025, Bitcoin broke its all-time highs and went beyond $100,000.
Source: StockMoney
Besides market sentiment, two major events influenced BTC’s 2025 price path—China’s new tariffs and a major Bybit hack. These incidents coincided with Bitcoin peaking and then retracing to nearly $50,000. Hence, the correction reflected both exhaustion and external shocks. Still, Bitcoin managed a solid recovery, trading around $85,000 to $95,000 by early May 2025.
Long-Term Structure Remains Bullish
Moreover, the broader trend aligns with previous market cycles. Each bear phase has led to extended gains, often after capitulation. Bitcoin’s price history consistently follows this rhythm. Consequently, corrections should not alarm long-term holders.
Additionally, Stockmoney Lizards argues that macroeconomic narratives often mask the market’s internal logic. Traders must recognize that fear or euphoria often align with key price levels. Looking ahead, the current correction could extend into Q4 2025. However, the long-term structure suggests another leg higher remains likely.
