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Bitcoin’s trajectory is rarely smooth, and its latest tumble is in stark contrast to what investors and traders expected on the heels of President Donald Trump’s inauguration.
At last check, Bitcoin (BTC) was trading above $101,000 overnight Sunday – down 3%.
Trump factor
Bitcoin enthusiasts were optimistic as Trump began his second term as president, anticipating a wave of pro-crypto politicians. Still, the inaugural address lacked a nod to digital assets, and the market noticed.
Investors who had bet on a crypto-friendly administration were disappointed, leading to a wave of sell-offs.
Adding fuel to the fire, a pair of Trump-branded meme coins – dubbed the official Trump (Trump) and “Melania” – entered the market with a burst of enthusiasm, only to collide spectacularly.
The Trump token halved just days after its debut, while the Melania coin fared even worse, losing 74% of its value. These flashy but short-lived ventures added instability to an already shaky market.
Economic crosswinds
Meanwhile, robust economic data from the US played a dual role. While the strong performance of traditional markets offered reassurance to some investors, it also diverted capital away from riskier assets such as cryptocurrencies. The interplay of these macroeconomic forces further complicated Bitcoin’s struggles.
Glimpses of hope
Despite the turbulence, Bitcoin still has significant value, trading above $100,000 – a level that many would have thought improbable just a few years ago.
In the long term, optimism remains. BlackRock CEO Larry Fink and other crypto bulls and firms that offer exchange-traded funds (ETFs) envision a monumental rise.
Fink predicted that Bitcoin could rise to $700,000 as institutional investors deepened their foray into crypto.
What’s next?
For now, the crypto market is facing a key endurance test. While the fall in Bitcoin has shaken confidence, the wider community remains resilient and this fluctuation is par for the course.
At press time, Bitcoin is valued at approximately $101,477. See below.
