Bitcoin Loses Momentum After a Historic Surge
Bitcoin surged unexpectedly to over $93,000, benefiting from expectations of interest rate cuts
and support from President-elect Donald Trump for cryptocurrencies.
However, it failed to maintain this strong momentum, falling below $90,000,
raising questions about its future in light of the current economic and political environment.

Content
Bitcoin
Analysis
Trump

Bitcoin

Performance and Volatility:
Bitcoin saw a 6% rise in the U.S., reaching an all-time high of $93,462 before dropping to $89,370 by Thursday morning in Singapore.
This continuous volatility reflects the prevailing uncertainty in the cryptocurrency market,
with trading swinging between gains and losses.

Bitcoin’s Future Under Trump’s Policies:
Investors and speculators are debating whether Trump’s clear support for cryptocurrencies will continue to drive Bitcoin’s price higher or whether the market will experience a wave of profit-taking after strong gains since the U.S. elections. Some analysts predict that Bitcoin could reach $100,000 if this trend continues, while others believe quick corrections are possible.

Analysis

Expert Analysis:
Chris Weston, Head of Research at Pepperstone Group, noted that the market could experience sharp fluctuations with two-way flows, but the current sentiment still favors Bitcoin’s rise. He expects buyers to return once the liquidation of certain positions is completed.

Economic Forecasts:
U.S. inflation data released on Wednesday aligned with analysts’ expectations, pushing traders to strengthen bets on another quarter-point interest rate cut by the Federal Reserve in December. At the same time, Trump’s broader policies, such as tax cuts and protectionist tariffs, add further complexity to the future economic picture.

Trump

Trump’s Election Promises:
Trump has promised to establish a friendly regulatory framework for cryptocurrencies and to make the U.S. the global hub for this industry. While these promises have been welcomed by the cryptocurrency community, there are doubts about the timeline and feasibility of implementing such policies.

Future Outlook:
Experts like Michael Novogratz believe that the likelihood of the U.S. creating a strategic Bitcoin reserve is low.
However, if this were to happen, Bitcoin could rise to record levels, potentially reaching $500,000.
The influence of cryptocurrencies is growing across the broader financial sector,
with Bitcoin exchange-traded funds (ETFs) seeing record trading volumes.

Conclusion:
As volatility in the cryptocurrency market continues and expectations of interest rate cuts rise,
the question remains whether Bitcoin will capitalize on the political and economic support to reach new heights or face rapid price corrections.

Bitcoin Loses Momentum After a Historic Surge

Bitcoin Loses Momentum After a Historic Surge

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