Bitcoin Drops to Lowest Level Since November as Momentum Fades Before Inauguration
Bitcoin hits $92,500, its lowest since November, as the pre-inauguration rally cools. Crypto stocks like MicroStrategy and Coinbase also see declines.
Bitcoin has taken a hit this week, dropping to $92,500 on Thursday, its lowest point since November. This comes after months of record-breaking highs that saw the cryptocurrency surge following Donald Trump’s presidential election win in November.
From Record Highs to a Steady Decline
After Trump’s win, Bitcoin skyrocketed, breaking $100,000 in early December and peaking at $108,000. The surge wasn’t limited to Bitcoin—crypto-related stocks also saw massive gains during the rally.
But in the days leading up to Trump’s inauguration, Bitcoin has lost some of its steam. Over the past week, its value has dropped by about 6%, with a sharp decline starting on Monday. Investors pulled over $580 million from Bitcoin exchange-traded funds (ETFs) on Wednesday, signaling growing caution in the market.
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What’s Slowing Bitcoin Down?
The cooling off 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 "crypto czar" role in the White House, appointing former PayPal CEO David Sacks to oversee Bitcoin and digital asset policies.
While these announcements have excited many in the crypto world, some experts say it’s too early to celebrate. Anthony Scaramucci, a crypto investor and former Trump administration official, has warned that policy changes in Washington won’t happen overnight. “Just because Trump supports crypto doesn’t mean everything will change immediately,” he said.
Impact on Crypto Stocks
The drop in Bitcoin’s price is also affecting crypto-related stocks. MicroStrategy, a major Bitcoin holder, has seen its shares fall by 12.7% since Monday. Coinbase, another key player in the crypto market, has dropped 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-crypto policies will reignite the rally, while others worry about a potential market correction like those seen in the past.
As 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 the broader global market trends.
Also Read: Michael Saylor Predicts Bitcoin Could Surge 12,630%! Here's What You Need to Know!
