Bitcoin Price Declines as Investors Await Clarity on Trump’s Policies
Bitcoin hit its lowest point in three months after experiencing a sharp decline. The cryptocurrency shockingly turned down after its initial price rise following the post-Trump election where market participants felt optimistic.
According to CNBC, Bitcoin was trading at $78,782 in Asia on Friday, down by 5.5% from the morning. The overall dip was about 25% from the middle of December. The price decline marks an ongoing period of market instability where several elements led to abrupt value depreciation. Post Trump won the U.S. elections, Bitcoin hit a record high of $81000.
Bitcoin Price Analysis
The drop in the price of Bitcoin is given by both internal and external market forces. The main reason for the decline is uncertainty about possible policy reforms post Trump election. When Trump announced the Bitcoin Reserve plan, the price of the crypto surged an all time high at $106,000.
But prices have fallen as investors avoid riskier assets because of global equity market weakness. Doubts about the new President’s policy on tariffs and ongoing tensions in Russia-Ukraine and Israel-Gaza have also weighed on the decline.
The investor sentiment was also hurt by the news of Bybit, a major crypto market getting hacked for $1.5 billion. Jeff Mei, chief operating officer at crypto exchange BTSE in a statement, “It seems that the market has become volatile in reaction to the Bybit incident.”
Bitcoin Trading Update
As Bitcoin hits low, unwinding its post Trump election gains, the cryptocurrency market is in a period of uncertainty. The drop in the price of Bitcoin points to the volatility of digital assets, where both outside economic influences and inside market dynamics come into play. In the end of 2024 as well, Bitcoin price dropped due to volatility and uncertainty in the market.
The most recent Bitcoin trading report indicates that although short-term volatility is likely to continue, the long-term future of Bitcoin will be determined by regulatory progress, institutional investment, and general market conditions. Investors need to tread this volatile terrain cautiously, weighing the risks and benefits of investing in virtual currencies.
Geoffrey Kendrick, head of digital assets research at Standard Chartered said in an interview on Thursday, “Bitcoin could surpass $200,000 this year.”
