Bitcoin just suffered its biggest two-day drop since the U.S. presidential election, falling nearly 3% over the weekend before stabilizing at $90,000 during Asian trading on Monday, according to Bloomberg.
Bitcoin Price Remains Cautious After US Presidential Election
Bitcoin prices have fallen as global markets are turning more cautious, as traders reassess the potential implications of President-elect Donald Trump's ambitious cryptocurrency agenda.
Trump has promised to create a regulatory environment friendly to digital assets, including ideas for a U.S. strategic bitcoin reserve and positioning the country as a global cryptocurrency hub. Of course, those plans are being closely monitored for their practicality and timeline. Industry groups continue to call on Trump to appoint a crypto-friendly SEC chairman when current chairman Gary Gensler steps down.
Investors Start Rethinking Cryptocurrency Market Amid Regulatory and Economic Shifts
Historically, the cryptocurrency market has responded well to U.S. presidential elections. Bitcoin has surged after each of the last four U.S. presidential elections. It surged more than 30% after Trump won on November 5 on optimism about his pro-crypto presidency.
But uncertainty remains as investors adjust their expectations on the prospect of future Federal Reserve rate cuts amid a strong U.S. economy, a factor that could impact speculative demand for cryptocurrencies.
Trump was once skeptical of digital assets, but he changed his mind after cryptocurrency companies invested millions of dollars in campaigns to promote their interests. The companies are pushing Congress not only for regulatory reform but also for a broader legal framework that would include cryptocurrencies in the U.S. financial system.
