How low can Bitcoin’s price go?

Bitcoin’s price has been floating around the $100K mark for the past month, experiencing new highs —Bitcoin reached over $109,000 on the 20th January 2025— and keeping the crypto community on their toes. But just a week later, in 24 short hours, Bitcoin’s price fluctuated by 7.3%, dropping from $105,424 on the 26th of January to reach an intraday low of $97,750 on the 27th of January. Analysts correlated the dip with a broader crypto market downturn, sparked by the release of China’s DeepSeek R1, which has had an adverse impact on AI-themed tokens. While Bitcoin has since rallied, its recent volatility has reignited discussions about market sensitivity, and whether a longer consolidation period is on the horizon.

In this article, we take a look at what the experts say about Bitcoin’s price fluctuations, and the factors influencing these movements over recent weeks.

What impacts Bitcoin’s price?

Rarely predictable, always exciting, Bitcoin’s price is influenced by a variety of factors that also affect the broader crypto market. As the dominant cryptocurrency, Bitcoin also tends to pull other coins and tokens up and down, and shape overall market trends. But those factors affecting Bitcoin specifically include supply and demand, market sentiment, and regulatory and technological developments. Bitcoin supply is capped at 21 million coins, which means that increased demand, or less supply (for example, following a halving event) can drive prices higher. 

Market sentiment can also lead to significant swings, often driven by media coverage, social media trends and public opinion. Regulatory developments, for example, can also have a huge impact. Favorable regulations can boost prices, while restrictive policies can cause declines. 2024’s spot Bitcoin and Ethereum ETF approval had a positive impact on both price and adoption, driving millions into these new funds. Technological innovation, such as improvements to blockchain technology, new projects —such as Ethereum Layer-2 blockchains— and increased crypto adoption, can further influence Bitcoin’s price. 

What does Trump have to do with Bitcoin’s price? 

In the past year, now-President Donald Trump has had a notable impact on both Bitcoin and the broader crypto market. This trend began in July 2024, when Trump was appointed keynote speaker at the Bitcoin 2024 Conference, alongside many other crypto advocates, including his then-opposition, Robert F. Kennedy Jr. (RFK). As part of his speech, he promised to implement a host of crypto-friendly policies should he be elected President. Upon his election, Bitcoin’s price appreciated by some 50%. 

Upon his re-election, Trump signed an executive order establishing a working group to review digital asset regulations and consider creating a national Bitcoin reserve. This decision marked a shift towards a more favorable regulatory environment for cryptocurrencies, at least in the U.S., which contributed to Bitcoin’s meteoric rise to a new all-time high of over $109,000 in early January. The Securities and Exchange Commission (SEC) is also under new leadership, after former SEC head Gary Gensler stepped down (a decision also influenced by Trump re-election). These developments have led to a sense of optimism within the crypto community, leading to increased investment and higher valuations. 

How low can Bitcoin’s price go?

Bitcoin’s recent price volatility has led analysts to explore potential support levels, looking into where buying pressure tends to grow and prevent further drops. They suspect Bitcoin will find a temporary bottom around the $95,000 price point. However, if it fails to hold above $96,000, analysts caution that the next key levels to watch would be $90,000 and $85,000, which could serve as critical support zones in the event of further declines. 

That being said, given the myriad of factors that affect Bitcoin’s price and fluctuations across the broader crypto market —including market sentiment, macroeconomic shifts, technological developments and regulatory changes— these predictions may prove unreliable. In the past, Bitcoin has defied technical analysis with sudden price swings, for better or worse. The cryptocurrency market remains highly unpredictable, and external events can have a dramatic impact.

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