Bitcoin is falling again: the price has dropped below $94,000, which is the worst period since Trump’s victory
26 November 09:34
Bitcoin has suffered its longest decline since Donald Trump was elected president of the United States after failing to reach the $100,000 mark and waning enthusiasm for the new president’s cryptocurrency policy. It is reported by Komersant ukrainskyi reports with reference to Bloomberg.
Over the past three days, the value of bitcoin has fallen by about 6% to $94,532 as of noon on Tuesday, Singapore time. The overall cryptocurrency market, which has grown by $1 trillion since the November 5 election, is also showing signs of stagnation.
What’s going on
Expert Noelle Echeson, author of the Crypto Is Macro Now newsletter, notes that difficulties in breaking the $100,000 level could have forced traders to take profits, believing that the market had reached its peak. However, she added that such episodes should be “short-lived.”
Tony Sycamore, market analyst at IG Australia Pty, said that the current drop in bitcoin is a “necessary pullback” to bring down the overheated market performance, rather than the beginning of a serious decline. He added that it is also a reminder that even cryptocurrency markets cannot move only upward.
In addition, amid Trump’s public statements about plans to impose new tariffs on imports from China, Mexico, and Canada, the cryptocurrency market was influenced by risk aversion. Futures on US stocks fell, while the dollar index rose, indicating investor caution.
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Trump’s promises
Donald Trump, who had previously been skeptical of cryptocurrencies, said that he wants to make the United States a global center for the crypto industry by offering favorable regulation and creating a national bitcoin reserve. However, it remains to be seen how quickly these changes can be implemented and whether all the promises are feasible.
TD Cowen expert Jarrett Seiberg emphasized in his note that after the inauguration on January 20, Trump will gain control of the US Securities and Exchange Commission (SEC), which may help ease cryptocurrency regulation.
In recent weeks, the US has seen an increase in support for cryptocurrencies. Since the election, more than $7 billion has been invested in spot bitcoin ETFs, which now manage $104 billion in assets.
Bitcoin
Bitcoin is the world’s first and most popular cryptocurrency, which appeared in 2009. It was created by a person or a group of people under the pseudonym Satoshi Nakamoto, who remains anonymous. Bitcoin is based on blockchain technology and has no centralized governing body.
Bitcoin is “mined” using a special mining technology, which is a digital analogy to the mining of physical minerals. Similarly to physical minerals, the number of Bitcoins is limited – there are only 21 million tokens in existence. So far, 19 million tokens have been mined, which is more than 90% of all “deposits”. Therefore, mining is becoming more and more difficult and expensive.
Bitcoin, like anything else in the world, can be exchanged for anything else, including traditional currencies. The value of Bitcoin shows the level of trust in it.
Bitcoin is considered a reliable and well-secured currency with a very high level of confidentiality. In the Bitcoin system, all information about transactions is open, but information about owners is completely anonymous. That is why Bitcoin, like some other cryptocurrencies, is popular among Ukrainian corrupt officials.
