Bitcoin (BTC-USD) experienced its longest losing streak since the period following Donald Trump’s 2016 U.S. presidential election victory, as a failed attempt to break the $100,000 mark dampened the speculative excitement that had surged after his pro-crypto stance. The cryptocurrency saw a three-day decline of approximately 6%, dipping to $94,000 as of 7:30 a.m. Tuesday in London. This marks a notable slowdown for the wider crypto market, which had added $1 trillion in value since Election Day on November 5 but stalled in recent sessions.
The struggle to surpass the $100,000 threshold has raised concerns among traders, with some speculating that the peak for Bitcoin may have already been reached. “The difficulty of cracking $100,000 for the first time could convince traders that the top is in, and profits should be locked in now,” noted Noelle Acheson, author of the Crypto Is Macro Now newsletter. However, Acheson suggested that any dip in sentiment is likely to be short-lived.
Bitcoin and the broader cryptocurrency market have also been impacted by a wave of risk aversion triggered by President-elect Trump’s recent remarks on global trade. Trump’s threat to impose additional tariffs on China, Canada, and Mexico rattled global markets, pushing stocks lower and driving the U.S. dollar higher as investors sought safer assets.
Adrian Przelozny, CEO of crypto exchange Independent Reserve, noted that “people have been looking for an excuse to take some profits,” but expressed confidence that the current bullish market sentiment would persist into 2025.
Trump’s Pro-Crypto Stance
Despite being a former crypto skeptic, Trump has become a vocal supporter of digital assets following significant financial backing from cryptocurrency firms during his election campaign. The president-elect has pledged to make the U.S. the global hub for cryptocurrency, advocating for favorable regulations and the creation of a national Bitcoin stockpile. While the details of these promises remain unclear, there is growing optimism that his administration will usher in a more crypto-friendly environment.
In a recent research note, TD Cowen analyst Jaret Seiberg highlighted that Trump’s administration will soon gain control of the U.S. Securities and Exchange Commission (SEC) following his inauguration on January 20. This shift could pave the way for a relaxation of crypto enforcement and a more favorable regulatory framework for digital assets.
Post-Election Crypto Surge
In the aftermath of the election, approximately $7 billion flowed into U.S. spot Bitcoin exchange-traded funds (ETFs). However, the momentum slowed on Monday, as the dozen ETFs experienced a $438 million outflow amid waning demand.
Market analysts, including Tony Sycamore of IG Australia, believe the recent Bitcoin pullback is a natural correction rather than a sign of a broader downturn. “It’s a much-needed pullback to work off overbought readings, rather than a reversal lower or anything sinister,” Sycamore said. “It also serves as a reminder that markets, including crypto markets, don’t move in straight lines indefinitely.”
Despite the recent dip, experts remain bullish on the long-term outlook for Bitcoin and the wider cryptocurrency market, with many expecting continued growth through 2025 and beyond.
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