How geopolitics, hacker attacks, and regulators impact the Bitcoin price
After reaching its historical maximum (ATH) in November 2021, the price of Bitcoin corrected and was unable to surpass this level for almost three years — until the end of 2024.
After hitting a new all-time high (ATH) at $107,000, Bitcoin's price dropped in February 2025 following adverse events in the cryptocurrency market and economic turmoil.
The crypto market crash in february-march
Until the end of February 2025, the price of Bitcoin remained within the range of $90,000 to $100,000 after reaching its last all-time high. However, the hacking of one of the largest crypto exchanges, ByBit, led to a collapse in Bitcoin's price and other digital assets.
As a result of the attack, hackers managed to steal around $1.4 billion in Ethereum cryptocurrency, as well as stETH, cmETH, and METH LST tokens. This triggered panic in the market and a massive sell-off of cryptocurrencies, leading to a more than 15% drop in Bitcoin's price to $83,000.
Investor panic intensified in late February after Trump's statement that 25% tariffs might be imposed on goods from Canada and Mexico. According to analysts from the OECD (Organisation for Economic Co-operation and Development), such political decisions could harm the US economy, potentially leading to declines in both the stock market and the cryptocurrency market.
At the same time, a large outflow of capital from Bitcoin funds was recorded, exceeding $3.6 billion in February. Additionally, that month saw the longest streak of outflows from Bitcoin ETFs since the funds were launched in January 2024, which continued for eight days.
However, in early March, Bitcoin's price returned to $94,000 after Trump announced the creation of a strategic crypto reserve for the US, which would include "digital gold" and several altcoins.
Nevertheless, shortly after, Bitcoin's price began to decline again, and by mid-March, it had fallen by about 17%, reaching a four-month low of $78,000. Experts attribute this to inflated expectations regarding the strategic Bitcoin reserve.
Investors had hoped the US government would immediately start buying BTC to form the reserve, but in reality, it was planned to be built from already confiscated coins. This led to a renewed capital outflow from US exchanges, including Bitcoin ETFs.
Stock market crash and continued Bitcoin correction
After reaching a local low, Bitcoin's price resumed growth, and by the end of March, it had risen by more than 10% to $87,000. However, in early April 2025, a new phase of correction began in the crypto market.
On April 2, Donald Trump announced the introduction of large-scale tariffs that would affect nearly every economic sector in the US. The politician referred to this as the "Day of Liberation," with new tariffs for some importing countries raised by 20-50%. Customs duties on imported goods were to be introduced for 185 countries starting April 9.
Trump's announcement triggered widespread panic among investors, resulting in the most significant stock market crash in the US since March 2020, followed by a sharp decline in the value of Bitcoin. The price of the leading cryptocurrency dropped to a new local low of $76,000.
Amid concerns about the slowdown of the US economy, investors' interest in volatile risk assets, such as stocks and cryptocurrencies, sharply declined, triggering a massive sell-off in both the stock and crypto markets. As a result, investors focused on more reliable instruments, such as fiat currencies and bonds.
However, Trump subsequently delayed the introduction of the tariffs multiple times. His announcement about postponing the tariffs helped restore optimistic sentiment, and Bitcoin's price began to rise again. By the end of April, the influx of capital into Bitcoin ETFs resumed, with the total amount reaching a record $110.2 billion.
Weakening dollar and new ATH for Bitcoin
From mid-April to the end of May 2025, Bitcoin showed growth. Analysts attribute this to the weakening of the dollar on global markets due to rising inflation expectations and Moody's downgrade of the US credit rating.
The instability of fiat currencies prompted investors to diversify their portfolios and hedge risks. In such conditions, traders and investors often view risk assets, like Bitcoin, as a means of capital preservation.
A favorable regulatory environment also helped the situation, as the US government actively worked on new regulations for digital assets. One of these bills — GENIUS — was approved by the US Senate in May. Against this backdrop, Bitcoin ETFs saw a steady daily inflow of capital, reaching $600 million.
By the end of April, the amount of Bitcoin held on centralized exchanges fell to a multi-year low of 2.4 million BTC. This may indicate that whales are increasing their positions in Bitcoin.
Additionally, according to Hashtelegraph, the number of wallets holding more than 1000 BTC reached nearly 1500. Analysts from this service note that traditional institutions and funds have become more active in investing in Bitcoin than ever before. CryptoQuant experts observed a general increase in the number of non-custodial wallets holding Bitcoin.
In June, the net inflow to Bitcoin funds surpassed $3 billion in a week, reaching almost record levels. This became the second-largest inflow into Bitcoin ETFs this year. At the same time, gold-based ETFs lost $4.9 billion since the end of April, indicating a significant redistribution of demand among traditional investors.
On May 22, Bitcoin's price reached a new historical high of nearly $112,000, according to monitoring service CoinMarketCap.
The market capitalization of the leading cryptocurrency also surpassed $2 trillion for the second time this year, outpacing the exact figure for silver and Alphabet (Google) stocks. As of June 2025, Bitcoin had risen to sixth place in the ranking of all global assets.
According to some analysts, Bitcoin's price may reach a new all-time high (ATH) by August, especially if the cycle aligns with the patterns of previous halving.