Bitcoin has taken a hit this week, falling to $92,500 on Thursday, its lowest point since November. This comes after months of record levels that saw a surge in cryptocurrencies following Donald Trump’s victory in the presidential election in November.
From all-time highs to a constant decline
After Trump’s victory, Bitcoin skyrocketed, surpassing $100,000 in early December and reaching a high of $108,000. The surge wasn’t limited to Bitcoin: Cryptocurrency-related stocks also posted massive gains during the rally.
But in the days leading up to Trump’s inauguration, Bitcoin has lost some of its strength. Over the past week, its value fell by approximately 6%, with a sharp drop starting on Monday. Investors withdrew more than $580 million from Bitcoin exchange-traded funds (ETFs) on Wednesday, signaling growing caution in the market.
What is holding Bitcoin back?
The cooldown comes despite Trump’s promises to support the cryptocurrency industry. He has announced plans to nominate Paul Atkins, a crypto-friendly figure, as head of the SEC. Trump also plans to create a “cryptocurrency czar” role in the White House, naming former PayPal CEO David Sacks to oversee Bitcoin and digital asset policies.
While these announcements have excited many in the cryptocurrency world, some experts say it is too early to celebrate. Anthony Scaramucci, a crypto investor and former Trump administration official, warned that policy changes in Washington will not happen overnight. “Just because Trump supports cryptocurrencies doesn’t mean everything will change immediately,” he said.
Impact on crypto stocks
Bitcoin’s price decline is also impacting cryptocurrency-related stocks. MicroStrategy, a major Bitcoin holder, has seen its shares fall 12.7% since Monday. Coinbase, another key player in the cryptocurrency market, fell 9.6% during the same period.
What’s next for Bitcoin?
Bitcoin’s recent stumble has left investors divided. Some believe the new administration’s pro-cryptocurrency policies will reignite the rally, while others worry about a possible market correction like those seen in the past.
When Trump takes office, the cryptocurrency market will likely remain volatile. For now, Bitcoin’s future depends on how investors react to economic news, regulatory changes, and broader global market trends.
Also read: Michael Saylor Predicts Bitcoin Could Rise 12,630%! Here’s what you need to know!