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Bitcoin recently hit a low of $76,600, raising concerns across the crypto community about its future trajectory. This decline briefly pushed the asset below its 200-day moving average, marking a significant shift from its record-breaking rally to an all-time high of $109,200. Over the past few weeks, Bitcoin has corrected by more than 25%, bringing its total market capitalization down to $1.53 trillion. While short-term factors such as stronger-than-expected CPI data, increased job availability in the US, and other macroeconomic developments have led to temporary relief rallies, Bitcoin has yet to regain its bullish momentum. Currently stabilizing near the $84,000 level, the key question remains—what factors could resume the bull run and push Bitcoin toward new all-time highs?How common are market corrections? During a bull run, consolidation phases such as this one are quite common. Over the last 10 years, we have seen over 11 instances where a 25%+ correction has occurred. When we look at the recent corrections in 2021 and 2017, the average correction was about 37% and 37%, respectively. Compared to the previous years, we are at a much better place for a recovery given that the perception of crypto has been changing across the world, starting from the US, China, the Middle East and many other emerging countries. What’s driving this correction?Trump’s tariff warAfter Bitcoin’s surge to an all-time high of $109,200, a period of consolidation was inevitable. However, the key catalyst behind the recent correction was President Trump’s decision to impose higher import tariffs on major economies, including Canada, Mexico, the EU, and China. While this move initially unsettled investors, prompting profit-taking across financial markets, the long-term implications could be more favorable for crypto.Historically, heightened tariffs have led to inflationary pressures and economic slowdowns, increasing demand for alternative stores of value. If trade tensions persist, investors—both retail and institutional—may seek refuge in assets like gold and Bitcoin, reinforcing crypto’s role as a hedge against economic uncertainty. A prolonged trade war could further accelerate Bitcoin’s adoption as a non-sovereign asset, potentially strengthening its position in global financial markets.Sell-Off from new investors and institutional investorsAnother key factor behind the recent downturn in the crypto market is panic selling by new investors who entered the space over the last three months. According to a report by 10x Research, nearly 70% of the current selling pressure in Bitcoin is coming from these recent entrants. As prices declined, fear-driven selling intensified, leading to further volatility.Additionally, institutional investors—who had been accumulating Bitcoin through ETFs over the past year—have also started offloading their holdings. Over the last five weeks, institutions have withdrawn approximately $5.4 billion from the market, redirecting capital toward safer assets like treasury yields amid rising uncertainty. However, institutional sentiment could shift with the introduction of the Strategic Bitcoin Reserve. As the reserve reinforces Bitcoin’s long-term credibility, we may see institutions transition from net sellers to net buyers in the months ahead, bringing renewed confidence to the market. Strategic Bitcoin reserveSomething that the entire crypto community was eagerly waiting for was the establishment of the Strategic Bitcoin Reserve. While Trump recently has announced the strategic reserve, a Reserve entirely made from seized assets, it did not please the investors as the US would not become a buyer of crypto, but a mere holder. However, a key provision in the executive order states that any BTC deposited in the reserve “shall not be sold” and will remain a part of the United States’ reserve assets. This effectively removes around 200,000 BTC worth nearly $17 billion from supply from circulation while positioning the US as a dominant force in the crypto market. Additionally, Bo Hines, Executive Director of the US President's Digital Assets Task Force, hinted that the White House intends to buy as much Bitcoin as possible, boosting investor confidence and increasing the odds of putting Bitcoin on a bullish trajectory. What should investors do? Market cycles are an inevitable part of every financial ecosystem, and crypto is no exception. The recent correction is a natural phase of the broader market trend, influenced by global economic shifts, policy changes, and investor sentiment. One of the most important steps investors must follow right now is setting clear financial goals and aligning investments with personal risk tolerance. Investors who establish a well-structured strategy can avoid emotional decision-making and take advantage of market pullbacks. Such corrections present an opportunity to deploy strategies like dollar-cost averaging (DCA), which allows investors to spread their purchases over time, generating better risk-adjusted returns in the long term. Additionally, diversification remains a key principle for managing risk. Allocating funds across different asset classes—such as equities, commodities, and crypto—can help balance exposure and improve portfolio resilience. (This article is attributed to Mr Edul Patel, Co-founder and CEO of Mudrex, a global crypto investing platform.)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

After reaching a new all-time high of Rs 88,310 per 10 grams on the MCX last week, gold April futures saw profit booking at elevated levels on Monday. As of 10:45 am, the contracts were trading 0.32% or Rs 278 lower at Rs 87,713 per 10 grams.Meanwhile, silver May futures on MCX managed to stay above the Rs 1 lakh per kg mark, despite some profit-taking. At the same time, silver contracts were trading 0.38% or Rs 379 lower at Rs 1,00,359 perOn Friday, gold and silver settled on a positive note in the domestic and international markets. Gold April futures contract settled at Rs 87,991 per 10 grams with a gain of 0.25% and silver May futures contract settled at Rs 1,00,738 per kilogram with a gain of 0.19%.Gold and silver prices showed solid strength last week amid uncertainty in the global financial markets due to U.S. trade tariffs. Internationally, gold prices crossed $3,000 per troy ounce for the first time in the international markets and silver prices hit 4-1/2 month highs amid safe-haven buying. “Global investor’s interest turned positive on gold ETF investments due to uncertainty and recession fears in the United States. Global gold ETF inflow hit 34 month highs in February month,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 103.76 mark, gaining 0.04 or 0.04%.“The U.S. economic data was also disappointing as consumer confidence shaken and UOM inflation expectation surged to 4.9%. Fear of stagflation in the U.S. could continue to drive bullion prices,” Jain added.He expects gold and silver prices to remain volatile this week amid volatility in the dollar index, the US trade war and ahead of the US FED policy meetings but gold and silver could hold its key support levels of $2,922 and $32.40 per troy ounce levels respectively on a weekly closing basis.Ranges for gold and silver by Manoj Kumar Jain:At MCX, gold has support at Rs 87,550-87,200 and resistance at Rs 88,320-88,600Silver has support at Rs 1,00,000-99,200 and resistance at Rs 1,01,400-1,02,000.Jain suggests buying silver around Rs 1,00,000 with a stop loss of Rs 98,800 for a target of Rs 1,02,000.Gold rates in physical marketsGold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 57,928/8 grams while pure gold (24 carat) prices stand at Rs 61,808/8 grams.Gold Price today in MumbaiStandard gold (22 carat) prices in Mumbai stand at Rs 57,008/8 grams while pure gold (24 carat) prices stand at Rs 60,752/8 grams.Gold Price today in ChennaiStandard gold (22 carat) prices in Chennai stand at Rs 56,864/8 grams while pure gold (24 carat) prices stand at Rs 60,592/8 grams.Gold Price today in HyderabadStandard gold (22 carat) prices in Hyderabad stand at Rs 56,768/8 grams while pure gold (24 carat) prices stand at Rs 60,496/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)