Bitcoin Dips Below $91K After Post-Election Rally
Bitcoin has slipped closer to the $90,000 threshold, pulling back after a significant rally following the presidential election results, where investors decided to lock in profits. The premier cryptocurrency saw a decrease of over 4%, trading at approximately $90,999.30, with a low of $90,702.27 earlier in the day, as reported by Coin Metrics. The broader CoinDesk 20 index also reflected this downturn, falling by 4.78%.
Stocks tied to the cryptocurrency market, such as Coinbase and MicroStrategy, experienced declines of 6% and 12%, respectively.
Mati Greenspan, the founder and CEO of Quantum Economics, noted via email to CNBC, “Bitcoin has been on an impressive run since Election Day with minimal pullbacks, yet the $100,000 milestone continues to be a significant psychological hurdle. While surpassing this level would be a strong bullish indicator, a slight downturn may be necessary to build sufficient momentum for another attempt.”
Long-term Bitcoin holders have started to sell larger quantities in the spot market, following the currency's consistent new highs this month. This selling pressure has been partly mitigated by inflows into Bitcoin exchange-traded funds (ETFs), which recorded $438 million in outflows after a five-day growth, and significant investments from MicroStrategy. CryptoQuant defines long-term holders as entities that have retained their Bitcoin for over 155 days.
Traders are taking profits for the second consecutive day after the post-election surge, which was driven by positive sentiments surrounding President-elect Donald Trump’s pro-cryptocurrency policy stance.
Brett Reeves from the crypto infrastructure firm BitGo stated, “Historically, after reaching new all-time highs, there is often a consolidation phase before prices rise again. We are aware that new institutional investments are entering the market and retail trading is on the rise through both ETFs and exchanges. With favorable macroeconomic and regulatory updates on the horizon, we may soon witness a resurgence in price activity.”
Since the U.S. elections, Bitcoin has surged over 30% and is up 114% for the year to date.
