The downward move comes after a notable rally fueled by the inauguration of Donald Trump as the 47th president of the United States.
He cryptocurrency market has a significant decline after Donald Trump’s speech. Bitcoin fell 4.4% to $103,184 and this decline takes it away from its all-time high of $109,114 reached last Monday. On the other hand, Ethereum lost 1.4% to $3,300. The rest of the cryptocurrencies fall 9% led by Dogecoin, Cardano (-8.4%), Hedera (-7.9%) and Ripple (-6.4%).
What is behind this setback?
The downward movement occurs after a notable rebound fueled by the inauguration of Donald Trump as the 47th president of the United States. Although his arrival in office was expected to benefit the sector, his first day in office has generated uncertainty in the markets. Trump did not mention cryptocurrencies in his inauguration speech, and they do not appear to be among the immediate priorities of his agenda.
A change of focus in the political landscape
Despite this, Analysts point out that the new Administration could mark a positive turn for the sector in the medium term. Trump promised more favorable policies towards crypto assets than those implemented by Joe Biden’s Government. In key positions, he appointed cryptocurrency advocates, including a new SEC chairman, a pro-industry Treasury secretary, and David Sacks as the White House’s “AI and Cryptocurrency Czar.”
Among the notable promises is the creation of a strategic reserve of bitcoins, although the probabilities of this happening in the first 100 days of office have fallen to 45%, according to Polymarket, compared to 60% registered on the same day of the inauguration.
Tokens associated with Trump, on the rise
In parallel, the meme tokens associated with the Trump family, TRUMP and MELANIA, reached a market capitalization of US$8.8 billion and US$945 million, respectively, consolidating themselves as prominent assets within the ecosystem.
From a technical approach, Javier Molina, senior analyst at eToro, indicated that Bitcoin’s next bullish target is $120,000. “Support at US$90,000 was key. If prices break US$107,000-108,000, the next target will be US$120,000. Otherwise, the support levels to watch are US$100,000 and US$98,000,” he said.
In conclusion, While the political stance of the new Administration could define the future of the sector, volatility continues to be the protagonist in the cryptocurrency market.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
