Bitcoin fell below $90,000 for the first time in two months, falling 3. 6% in 24 hours as market pressure increased.
Data from CoinMarketCap shows that Bitcoin’s value fell to around $89,900 on January 13. However, at the time of this publication, it was trading at over $95,000.
According to James Toledano, COO at Unity Wallet, there are several reasons why Bitcoin’s price fell.
“The first is profit taking, after peaking around $108,300 in mid-December, the market saw a lot of this, especially after the election of pro-crypto president-elect Donald Trump,” Array told CoinJournal, and added:
“Secondly, while institutional buying has continued contributing to Bitcoin reserves on exchanges hitting a seven-year low, trading volume remains subdued and this could simply be down to a seasonal slow-down.”
Recent research suggests that gloomy economic expectations are this bearish sentiment. This includes Trump’s tariff plans, the U. S. Federal Reserve’s cautious technique for cutting interest rates, and a strong dollar.
Zach Pandl, director of Grayscale Investments, told CNBC that:
“I would largely characterize the decline of the last two days as the market beginning to sense that not every facet of Trump’s political timetable will be positive for Bitcoin, and price charts introduce new uncertainty. ”
Questions about Trump’s upcoming policies would have possibly dampened enthusiasm, which may also “lead to short-term volatility for an asset that is already very volatile,” Toledano said.
Some analysts believe Bitcoin can reach between $140,000 and $200,000 by mid-2025, so the current price action may appear concerning. Yet, it doesn’t necessarily signal the end of the bull run.
“The inauguration of President-elect Trump is just seven days away and could be a pivotal moment, with markets anticipating announcements of pro-crypto policies that might spark renewed buying interest,” said Toledano. “Institutional accumulation, as reflected in falling exchange reserves also supports the view that demand remains strong despite low trading volumes.”
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