Bitcoin’s price saw a significant pullback as the post-Trump rally lost momentum. Analysts suggest that profit-taking is behind the decline, but the $100,000 (€95,400) mark remains within reach.
Over the past 24 hours, Bitcoin’s price has dropped by 3.6%, falling to just above $94,000 (€89,000) by 5:30 AM CET. This retreat is largely attributed to profit-taking following the surge driven by the post-election rally. Without a new catalyst to push Bitcoin past the key psychological level of $100,000 (€95,400), the world’s largest cryptocurrency stalled.
Bitcoin reached a new high of over $99,000 (€94,400) last Friday, marking a 46% increase since November 5, following former President Trump’s victory in the US election. Markets had anticipated that Trump’s administration would implement favorable policies for cryptocurrencies, especially after his campaign promise to make America a “crypto capital.”
“There is no doubt that reaching the $100,000 mark will be a significant psychology level for many and we may see some profit taking along the way,” said Josh Gilbert, a market analyst at eToro Australia, in a note to clients last Friday.
Year-to-date, Bitcoin has surged by 122%, boosted by the approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) in February, as well as a Bitcoin halving event in April. Additionally, central banks’ rate cuts and relaxed liquidity measures have provided favorable macroeconomic conditions for cryptocurrencies this year.
