Bitcoin continues its sharp price collapse in the digital currency markets, recording its longest series of declines since Donald Trump won the US presidential election. This decline comes after repeated and unsuccessful attempts to exceed the $100,000 barrier, which raised many questions about the future of the largest digital currency in the world. Bitcoin’s failure to maintain the $100,000 level prompted some investors to question its stability, which affected their enthusiasm for investing in this currency.
Continuous decline in the price of Bitcoin
Over the past three days, Bitcoin has witnessed a significant decline of nearly 9%, which reflects the extent of the decline in demand for it. On Tuesday morning, the digital currency fell by 5.5% in the last 24 hours, reaching the $92,500 level. This decline reflects a general trend in the digital currency market, as Bitcoin has become under severe pressure from successive declines.
Factors Affecting Bitcoin’s Decline
The decline in Bitcoin’s price is linked to several factors, most notably increased concerns about inflation, stock market volatility, and declining confidence in political support for digital currencies. Since Trump’s election, digital currency values have risen significantly, but it seems that this momentum is gradually losing strength. The continued decline in Bitcoin’s price also reflects a loss of motivation among investors after the currency was trading at record levels earlier in the year.
The digital market is witnessing a general decline
The losses were not limited to Bitcoin alone, but the digital currency market in general witnessed a significant decline. Although the market added more than a trillion dollars to its value since the November 5 elections, these gains have declined significantly recently. Investors who were expecting continued increases in digital currencies have begun to get rid of their shares due to concerns about further declines.
New expectations for the digital currency market after Bitcoin failed to break the $100,000 barrier
Noelle Acheson, author of the Crypto is Macro Now report, said that Bitcoin’s failure to break the $100,000 barrier could indicate that the market has peaked. This decline could lead some traders to believe that it is a good time to sell for profits. However, she stressed that this decline should be considered “temporary.” Despite this decline, there is still a strong possibility that the market will continue its upward trend in the future.
The impact of geopolitical statements on cryptocurrencies
Cryptocurrencies have come under additional pressure after Donald Trump’s recent statements regarding imposing new tariffs on Chinese imports. He also announced the imposition of 25% tariffs on products from Canada and Mexico. These statements affected financial markets in general, as US stock futures declined. At the same time, the US dollar index recorded a significant increase, reflecting a state of caution among investors.
Mixed expectations regarding the future direction of cryptocurrencies
Despite the current pressures, some experts believe that the upward trend in cryptocurrencies may continue in the future. In this context, Adrian Brizzelloni, CEO of Independent Reserve, stated that investors were looking for an opportunity to make profits, and that the upward trend in digital currencies will continue until 2025. These expectations are in line with the optimistic view of some analysts, who believe that digital currencies will continue to retain their attractiveness as an investment tool in the coming years.
Market Volatility and Its Impact on Digital Currency Investors
The digital currency market continues to be volatile, as the price of Bitcoin remains vulnerable to economic and geopolitical influences. Despite some declines in digital currencies recently, the cryptocurrency market still has great growth potential. These volatility offers great opportunities for investors who focus on the long term.
Trump plans to make the United States a global hub for digital currencies
Former US President Donald Trump has announced plans to transform the United States into a global hub for digital currencies. These plans include regulations that encourage the use of digital currencies, as well as the creation of a national reserve of Bitcoin. However, there are still doubts about the speed of implementation of these policies and their full implementation in the future.
Predictions about Trump’s impact on the digital currency sector
According to Garrett Seberg, an analyst at TD Cowen, Trump’s re-election as president on January 20 will give him direct authority over the Securities and Exchange Commission. This could facilitate the relaxation of the current stringent regulations, which would enhance compliance in the digital currency sector. With these potential changes, the digital currency market could see a significant improvement in its regulatory environment, which could attract more investment.
Trump’s support for digital currencies after financial support from crypto companies
Trump’s stance on digital currencies has seen a noticeable shift from skepticism to strong support, especially after financial support his election campaign received from crypto companies. This shift in stance reflects growing openness to digital currencies and their financial instruments. As a result, Bitcoin ETFs saw massive inflows, exceeding $7 billion after the election. The total assets of these funds reached $105 billion, reflecting a growing interest in investing in cryptocurrencies.
The recent correction in the crypto market
Despite the significant momentum that cryptocurrencies have witnessed recently, the market has not been immune to volatility. Tony Sycamore, a market analyst at IG Australia, described the recent decline in crypto prices as a “necessary correction to mitigate overbought readings.” He stressed that this decline is not a sharp collapse or an indication of an impending crisis. Rather, it reminds us that markets, including cryptocurrencies, do not always move in one direction.
The future of cryptocurrencies amid political changes
The digital markets continue to face the challenges of volatility and political changes that may affect their movement. With the increasing support from prominent political figures such as Trump, the market’s growth opportunities may increase. At the same time, many questions remain about the impact of new policies on global regulations and the stability of the market in the future.
