The Trump effect on Bitcoin seems to have worn off for the time being. The psychological milestone of $100,000 was just missed last week, and the price has now even dipped below $90,000. Investors who entered at around $68,000 took their profits.
The downturn led to $250 million in liquidations, although this pattern of corrections is not unusual. Previous price spikes, such as those between November 9 and 13, resulted in even larger liquidations of $342 million.
The rise in the price of Bitcoin mainly started after the election win of Donald Trump, who has promised a more liberal crypto policy. The possible resignation of Gary Genseler, chairman of the stock exchange watchdog SEC, was also good news in the eyes of crypto supporters. Genseler has taken on quite a few crypto companies and was also not in favor of Bitcoin ETFs, which only came about after lawsuits.
Speculation about a US interest rate hike in December and the fear of trade wars due to the tariffs that Donald Trump wants to impose on Mexico, Canada and China have dampened enthusiasm again.
Still, many analysts remain bullish. “Historically, when new all-time highs are reached, there is usually a period of consolidation before rising further,” Brett Reeves of crypto infrastructure firm BitGo tells CNBC.
Source: www.emerce.nl
