Just one week before President-elect Donald Trump takes office, Bitcoin dropped further, hitting $92,000.
At 2:34 p.m. Nigerian time on Monday, Bitcoin was trading at $91,400.96, down almost 3%.
As of 2:23 a.m. on Tuesday in Nigeria, Bitcoin, which hit a record $108,316 last month, was trading at roughly $94,800. Since the US Election Day, the token’s gain has slowed to about 40%.
Other cryptocurrencies also saw decreases at the beginning of the week. Solana sank almost 6%, Dogecoin, Elon Musk’s preferred digital asset, lost nearly 5%, Cardano fell nearly 8%, and Ethereum’s native token, Ether, the second-largest cryptocurrency by volume, fell more than 5% to $3,083.01 each.
Investors Feel Nervous
Due to the US economy’s resilience and the possibility of inflationary immigration and tariff policies under President-elect Donald Trump, who takes office next week, investors are worried about a protracted Federal Reserve rate delay.
Charlie Morris, Chief Investment Officer at ByteTree Asset Management, stated, “It makes little sense to try to call a turn until markets get a sense of what the new administration will really mean. We can assume it is pro-crypto, but we cannot escape the fact that major financial markets are richly priced, with the tech sector vulnerable to a pullback.”
What To Note
After Gary Gensler resigned, the cryptocurrency sector applauded the president-elect’s appointment of bitcoin champion Paul Atkins to chair the Securities and Exchange Commission.
- Since 2017, Atkins has headed The Digital Chamber’s Token Alliance, promoting best practices and suggesting legislative frameworks that support the cryptocurrency sector. He currently heads the consultancy business Patomak Global Partners.
- According to investors, Trump is expected to encourage the use and legitimacy of digital assets. Throughout the campaign, he stated that all Bitcoin should be mined in the United States, advocated for a strategic national reserve, and signed his name to several cryptocurrency ventures.
- Many in the cryptocurrency world are hopeful for a long-lasting boom under Trump and think this is a corrective phase.
As the US prepares for Donald Trump’s inauguration on January 20, all eyes are on the cryptocurrency markets.