Bitcoin’s path is rarely smooth, and its latest stumble stands in stark contrast to what investors and traders expected in the wake of President Donald Trump’s inauguration.
At last check, Bitcoin (BTC) was trading just above $101,000 on Sunday night – down 3%.
The Trump factor
Bitcoin fans were optimistic as Trump began his second term as president, anticipating a wave of pro-crypto policies. However, the opening speech lacked any reference to digital assets, and I note the market.
Investors who bet on crypto-friendly management were left disappointed, prompting a wave of selling.
Adding fuel to the fire, a pair of Trump-branded coins — graphically called Trump (Trump) and “Melania” — entered the market with a burst of enthusiasm, only to crash spectacularly.
The Trump token halved in value just days after its debut, while the Melania token fared even worse, losing 74% of its value. These cheerful but short-lived projects added instability to an already tense market.
Economic winds
Meanwhile, strong economic data from the United States played a dual role. While the strong performance of traditional markets has provided reassurance to some investors, it has also diverted capital away from riskier assets such as cryptocurrencies. The interaction of these macroeconomic forces compounds Bitcoin’s struggles.
A ray of hope
Despite the turmoil, Bitcoin still has great value, trading above $100,000 – a level that many would have considered improbable just a few years ago.
In the long term, optimism remains. BlackRock CEO Larry Fink, other bulls and companies offering exchange-traded funds (ETFS) envision a huge increase.
Fink predicted that Bitcoin could rise to $700,000 as institutional investors deepen their foray into crypto.
What’s next?
Right now, the crypto market is facing a critical test of resilience. While Bitcoin’s downturn has shaken confidence, the broader community is standing firm, seeing these fluctuations as par for the course.
At press time, Bitcoin is valued at approximately $101,477. see below.
