Since falling from the "altar" of nearly $100,000, Bitcoin has experienced its longest consecutive decline since Trump's election victory
Bitcoin recently set the longest consecutive decline since Trump won the U.S. election, with prices once nearing $100,000, currently at $94,505. Market enthusiasm for Trump's cryptocurrency policy has cooled, leading to a nearly 6% drop in Bitcoin over three consecutive days. Analysts believe that despite the current cautious market sentiment, bullish expectations for the future still exist. Trump's commitment to promoting cryptocurrency-related regulations may influence market direction
According to the Zhitong Finance APP, Bitcoin has recently experienced its longest consecutive decline since Donald Trump won the U.S. presidential election. Previously, Bitcoin had approached $100,000, but enthusiasm for the president-elect's embrace of cryptocurrency is now cooling.
As of the time of writing, the price of Bitcoin is $94,505. As of Monday, Bitcoin has fallen about 6% over three consecutive days, and the broader cryptocurrency market, which had gained $1 trillion since the election day on November 5, is also stagnating.
Noelle Acheson, author of the "Crypto is Macro now" newsletter, stated that the difficult breakthrough of $100,000 "may lead traders to believe that the peak has been reached and that profits should be locked in now." However, she added that any such episode should be "short-lived."
On Tuesday, Trump announced plans to impose additional tariffs on Chinese imports and a 25% tariff on products from Mexico and Canada, disrupting global markets and creating a wave of risk aversion in cryptocurrencies. U.S. stock index futures fell, and the dollar index rose, indicating investor caution.
Adrian Przelozny, CEO of cryptocurrency exchange Independent Reserve, stated, "People have been looking for an excuse to take profits." "We are still very confident that the current bullish market sentiment will last until 2025."
Trump's Commitment
Trump has promised to make the U.S. a global cryptocurrency hub by promoting supportive regulations and a national Bitcoin reserve. Questions remain about how quickly he can make changes and whether those changes are feasible.
TD Cowen analyst Jaret Seiberg noted in a research report that after the inauguration on January 20, the president-elect "will immediately gain control over the Securities and Exchange Commission," adding that this will be a "positive sign for relaxing crypto enforcement and promoting compliance."
Trump was once skeptical of cryptocurrencies, but after digital asset companies spent heavily to promote their interests during the campaign, he has shifted to a supporter. In recent days, there have been increasing signs that the U.S. is becoming more accepting of cryptocurrencies.
As a result, after the election, over $7 billion flowed into U.S. spot Bitcoin exchange-traded funds (ETFs). These ETFs currently hold a total of $105 billion in assets.
Tony Sycamore, a market analyst at IG Australia Pty, stated that the recent pullback in Bitcoin is "a much-needed correction to eliminate overbought data, rather than a reversal or anything negative." He said, "This also reminds people that markets, even the crypto market, do not move in a straight line indefinitely." ”