Bitcoin (CRYPTO:BTC) has moved into a corrective phase as digital asset markets react to rising geopolitical tensions, uncertainty around US monetary leadership, and ongoing regulatory delays.
Market volatility has increased as investors reassess short-term risk following a convergence of political and macroeconomic pressures impacting global assets.
Analysts broadly describe the latest price movement as a correction rather than a sign of deeper structural weakness in the crypto market.
CoinShares head of research James Butterfill said current conditions reflect overlapping pressures rather than a breakdown in long-term fundamentals.
Bitcoin is currently in a correction phase driven by multiple factors simultaneously,” James Butterfill said.
He pointed to renewed geopolitical stress, including developments linked to Greenland and fresh tariff threats, as key contributors to weaker sentiment.
Butterfill noted that these tensions echo previous trade disputes that temporarily weighed on bitcoin prices before markets stabilised.
He also highlighted sustained selling from large holders, often referred to as whales, as a short-term drag on price performance.
Recent geopolitical stress surrounding Greenland and renewed tariff threats are weighing on market sentiment, while sustained selling pressure from large market participants is dragging prices lower in the short term.
James Butterfill said.
Butterfill added that while the four-year bitcoin cycle theory lacks strong fundamentals, it has increasingly influenced trader behaviour.
The four-year cycle theory has become increasingly self-fulfilling and is contributing to the current pullback.
James Butterfill also noted.
Historical comparisons suggest geopolitical shocks often trigger sharp initial sell-offs before entering a period of consolidation.
Butterfill said past events such as currency market disruptions and trade disputes followed a similar pattern in bitcoin markets.
Historically, geopolitical shocks tend to trigger sharp drawdowns in bitcoin before a phase of stabilisation begins.
James Butterfill emphasized.
Beyond geopolitics, uncertainty surrounding the next US Federal Reserve chair has emerged as another key driver of market sentiment.
Prediction markets have increasingly priced in Kevin Warsh as a leading candidate following comments from President Donald Trump.