After U.S. President Donald Trump was elected, Bitcoin (BTC) erased all of its gains and fell to its lowest level in over three months.
The Price of Bitcoin Noticeably Drops
The price of Bitcoin was about $80,500 at the start of Friday trade in Asia, down 3.45% for the day and more than 25% below its mid-December peak. Trump had positioned himself as pro-crypto during his campaign, which sent Bitcoin skyrocketing before his election victory in November. Prior to his election triumph in November, Trump had positioned himself as pro-crypto during his campaign, which caused Bitcoin to soar. But worries about the fragility of the world’s stock markets, the uncertainty around new U.S. tariffs, and the ongoing geopolitical conflicts—such as the Israel-Gaza hostilities and the Russia-Ukraine war—have caused investor attitude to change.
Market Unpredictability and Crypto Issues
News of a $1.5 billion hack of the well-known cryptocurrency exchange Bybit, which is now thought to be the biggest crypto theft in history, further exacerbated Bitcoin’s recent decline.
According to BTSE Chief Operating Officer Jeff Mei, the Bybit breach led to market volatility. Additionally, he noted that the Federal Reserve’s decision to halt interest rate decreases and inflation worries have increased pressure on cryptocurrency markets.
The Trump Administration’s Pro-Crypto Actions
Some analysts are still optimistic about Bitcoin’s future despite the price decline. The Trump administration has already taken steps to promote bitcoin use, including
- an executive order that encourages cryptocurrency creation and a national digital asset stockpile.
- A newly appointed crypto czar led a specialized crypto task force that sought regulatory clarification.
Geoffrey Kendrick, the head of Standard Chartered’s digital asset research, is hopeful about the future of Bitcoin. On CNBC’s “Squawk Box Europe,” he said that more institutional use and more lenient U.S. laws might push Bitcoin above $200,000 this year.
If government initiatives and financial institutions that support cryptocurrencies continue to express interest, Bitcoin’s volatility may ultimately decrease. Market volatility results from short-term drops, while long-term confidence persists.
Source: CNBC
