Over the past 24 hours, Bitcoin has continued to fall and reached a more than three-month low, almost losing what it achieved with the election of Donald Trump as US President.
Image source: coindesk.com
Bitcoin fell 5.5% in a day to $78,782, down about 25% from its all-time high in mid-December. The world’s largest cryptocurrency began to rise sharply after Trump’s victory, as he positioned himself as a supporter of the industry during the election campaign. But prices have still fallen by now, as investors are avoiding assets considered riskier, fueled by weak global markets, uncertainty about tariffs the new president intends to impose, and resolutions on events in Ukraine and the Middle East.
Investor sentiment was dampened by the hacking of cryptocurrency exchange Bybit, where hackers stole about $1.5 billion — this is considered the largest cryptocurrency theft in history. Pessimism is exacerbated by concerns about inflation and expectations of a smaller cut in the US Federal Reserve key rate.
However, there is also reason for optimism: enthusiasts continue to expect changes from the Trump administration regarding the cryptocurrency regulations in force in the United States. He has already signed an executive order aimed at developing the industry in the country and creating a national reserve of digital assets. Specialized groups have been created and even a “crypto czar” has been appointed – an official who is tasked with maintaining a clear regulatory framework for crypto assets. It is believed that this year Bitcoin may surpass the $200,000 mark; volatility will be reduced by government work with cryptocurrency and “regulatory clarity” of digital assets in the United States.