Since Trump won the U.S. presidential election, Bitcoin has seen a decline this week, as the speculative frenzy in the crypto space appears to be cooling off after failing to hit $100,000.
As of Tuesday's European session, Bitcoin has dropped nearly 5% this week, briefly falling below the $93,000 mark. The broader cryptocurrency market, which has increased by $1 trillion in market value since election day on November 5, is also stagnating.
Noelle Acheson, author of 'Crypto is Macro now', wrote, 'The difficulty in breaking through $100,000 may lead traders to believe that the peak has arrived and that it's time to lock in profits,' however, she added that any such episode should be 'short-lived.'
After Trump vowed to impose additional tariffs on China and neighboring countries Canada and Mexico, disrupting global markets, cryptocurrencies also faced a wave of risk aversion. The stock market struggled, and the dollar rose, reflecting investors' cautious sentiment.
Adrian Przelozny, CEO of cryptocurrency exchange Independent Reserve, said, 'People have been looking for excuses to take profits, and we still firmly believe that the current bullish sentiment will last until 2025.'
Trump's Commitment
Trump has promised to make the U.S. a global cryptocurrency hub by enacting supportive regulations and establishing a national Bitcoin reserve, but questions remain about how quickly he can make these changes and whether all these changes are feasible.
TD Cowen analyst Jaret Seiberg stated in a research report that when the elected president takes office on January 20 next year, 'he will immediately control the SEC,' adding that this will be 'a positive signal for relaxing cryptocurrency enforcement and promoting compliance.'
Trump was once skeptical about cryptocurrencies, but after digital asset companies vigorously promoted their benefits during his campaign, he shifted to being a supporter. In recent days, signs of increasing acceptance of cryptocurrencies in the U.S. have become more evident.
According to data compiled by foreign media, about $7 billion flowed into U.S. spot Bitcoin ETFs after the election. However, due to weakening demand, these dozen or so ETFs experienced an outflow of $438 million on Monday.
Tony Sycamore, a market analyst at IG Australia, stated that the recent pullback in Bitcoin is 'a much-needed retreat to eliminate overbought signs, not a reversal of the decline or any ominous sign; it also serves as a reminder that even the cryptocurrency market won't rise indefinitely in a straight line.'
Article reposted from: Jin Shi Data
