Fueled by Donald Trump's victory in the U.S. election, the prices of Bitcoin and cryptocurrencies surged but then plummeted (even though Elon Musk quietly confirmed a change in the cryptocurrency market landscape).
The price of Bitcoin has dropped from nearly $100,000 on Monday to $90,000 per Bitcoin. The cryptocurrency price correction has resulted in the evaporation of about $200 billion from a market with a total market value of $3.2 trillion.
Now, after a leak revealed a potential Wall Street earthquake next year that could hit Bitcoin, traders are nervously watching how low Bitcoin prices might fall. Previously, cryptocurrency billionaire Michael Novogratz warned that Bitcoin prices could drop to $80,000 before rebounding.
Michael Novogratz, CEO of cryptocurrency financial services company Galaxy Digital, told CNBC: "There is a lot of leverage in the system right now. The crypto community has leveraged to the extreme, so there will be adjustments."
Novogratz predicts that the price of Bitcoin may fall back to around $80,000 per Bitcoin, but he stated that he does not expect it to drop below that level—before President Trump's election victory, the trading price of Bitcoin indicated a "paradigm shift" in cryptocurrency regulation.
"Almost the entire cabinet holds Bitcoin and they are all supporters of digital assets," Novogratz said when discussing the incoming Trump administration, adding that he believes it is inevitable for Bitcoin to eventually break through the $100,000 barrier. "So everyone sitting around the table is very supportive of this space. They support innovation, support digital assets, and support Bitcoin."
However, other observers of Bitcoin prices and the cryptocurrency market also warn that Bitcoin may significantly drop before recovering.
FxPro Chief Market Analyst Alex Kuptsikevich commented in an email: "Bitcoin fell below $93,000 on Tuesday morning, further deepening the correction and marking its fourth consecutive day of decline."
"On Monday, Bitcoin again attempted to push the price above $99,000, but ultimately saw more sell-offs. This was due to geopolitical corrections, and from the entire rally since November 4, it has evolved into a broader profit-taking situation. This means that traders should pay more attention to Bitcoin's momentum around $91,800 (76.4% of the rally). If this area does not have proper support, the next target for bears could be the $87,000 area (61.8%)."
