Bitcoin posted its longest losing streak since Donald Trump’s election victory, after its failure to break the $100,000 threshold cooled the speculative fervor sparked by the president-elect’s embrace of cryptocurrencies.
The four-day losing streak has wiped out about 9% of the value of the cryptocurrency, which was trading at $91,100 as of 3:23 p.m. Tuesday in New York. The broader cryptocurrency market has given up some of its $1 trillion lead since Election Day on Nov. 5.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, wrote that the difficulty of breaking through $100,000 for the first time may convince traders that the level is still achievable and profits should be locked in now. However, she added that any such spectacle should be fleeting.
Cryptocurrencies also faced a bout of risk aversion earlier Tuesday, after Trump rattled markets with his pledge to impose additional tariffs on China as well as U.S. neighbors Canada and Mexico.
Cryptocurrency-related stocks also fell, with MicroStrategy down about 13%, though the company’s stock is still up more than 400% this year. Coinbase, the largest U.S. crypto exchange, fell about 6%.
“Investors are looking for an excuse to take some profits,” said Adrian Przeluzny, CEO of cryptocurrency exchange Independent Reserve, adding: “We remain confident that the current bull market sentiment will continue into 2025.”
Trump's Business
Trump has pledged to make the United States the global home of cryptocurrencies, by strengthening supportive regulations and creating a national reserve of Bitcoin. Questions remain about how much change he can make, and whether all of it is possible.
In a research note, TD Cowen analyst Jarrett Seberg said that the president-elect will gain immediate control of the SEC after his inauguration on January 20, adding that this would be a positive sign when it comes to easing restrictions on the crypto industry and easing the path to compliance.
Trump, once a cryptocurrency skeptic, has turned into a supporter after digital asset companies spent heavily during the election campaign to promote their interests. In recent days, there have been growing signs of the United States’ growing embrace of cryptocurrencies.
As a result, about $7 billion flowed into U.S. bitcoin exchange-traded funds after the election, according to data compiled by Bloomberg.
But exchange-traded funds saw $438 million in outflows on Monday as demand waned. “Profit-taking is normal after a strong accumulation phase, and we expect these outflows to last no more than two to three days before institutional demand returns,” said Valentin Fournier, an analyst at BRN.
