Bitcoin has dropped by 4%, failing to hold the critical support level of $100,000. The price fell to a daily low of $92,785. This is the largest drop since Trump's return to the presidency, and as of the time of writing, BTC is trading at approximately $94,512. Daily trading volume surged by 60% to reach $84.84 billion.
Options expiration date and reasons for the decline
The decline in Bitcoin's value can be attributed to several factors. Bitcoin options worth $9.4 billion are set to expire on Friday, triggering market volatility. According to Deribit data, the maximum pain point has been identified as $78,000. Additionally, Trump's new tariffs on imports from China, Mexico, and Canada have placed selling pressure on the market. Reports indicate that this decision has negatively affected U.S. stock futures.
Bitcoin has dropped by 4%, failing to hold the critical support level of $100,000. The price fell to a daily low of $92,785. This is the largest drop since Trump's return to the presidency, and as of the time of writing, BTC is trading at approximately $94,512. Daily trading volume surged by 60% to reach $84.84 billion.
Options expiration date and reasons for the decline
The decline in Bitcoin's value can be attributed to several factors. Bitcoin options worth $9.4 billion are set to expire on Friday, triggering market volatility. According to Deribit data, the maximum pain point has been identified as $78,000. Additionally, Trump's new tariffs on imports from China, Mexico, and Canada have placed selling pressure on the market. Reports indicate that this decision has negatively affected U.S. stock futures.
Market experts believe this decline is due to Bitcoin's overbought levels. IG Markets analyst Tony Sycamore noted that Bitcoin's price is undergoing a 'healthy correction.' However, according to Credibull Crypto, falling below $94,000 could pose a risk of dropping to $80,000.
Trump's cryptocurrency plans and market expectations
The Trump administration's new strategy regarding cryptocurrencies is attracting attention. The White House plans to establish a cryptocurrency advisory committee aimed at implementing regulations in this field. Meanwhile, significant purchases by institutional investors have also drawn market attention. During this period, MicroStrategy purchased 55,000 Bitcoins, and Semler Scientific also increased its buying volume.
U.S. economic indicators are impacting the cryptocurrency market. Core personal consumption expenditure data could influence the Federal Reserve's interest rate decisions, thereby affecting Bitcoin's volatility in the coming days. Amid market fluctuations and economic uncertainty, investors should remain cautious. The recent decline in Bitcoin's price highlights the dynamic nature of the cryptocurrency industry.