Bitcoin has just experienced its longest losing streak since Donald Trump’s victory in the US presidential election. A sharp sell-off on November 25 saw the asset’s value fall by more than half from last week’s gains. Bitcoin fell 4.8%, or $4,800, to $93,000. As of this morning (Vietnam time), Bitcoin was trading at $94,245, after falling about 6% over three consecutive days.
This comes shortly after Bitcoin’s price failed to reach $100,000, along with expectations that the president-elect would support cryptocurrencies.
What’s the reason?
Noelle Acheson, author of the Crypto Is Macro Now newsletter, said that the failure to break $100,000 may have led many traders to believe that Bitcoin has topped out, prompting them to take profits. However, she stressed that such developments are temporary.
Analysts say the decline could be related to traders rebalancing positions as the financial year nears its end. “We see a confluence of two major catalysts temporarily pushing Bitcoin lower,” said Ryan McMillin, chief investment officer at Merkle Tree Capital.
First, the $100,000 price threshold, which is considered a “psychological barrier,” has created strong selling pressure as many traders take advantage of the strong rally triggered by President-elect Donald Trump’s election victory. Second, market makers are also taking advantage of the opportunity from highly leveraged long positions, pushing the price down to trigger liquidations and add liquidity to the market.
Risk-off sentiment also increased on Tuesday after Trump announced plans to impose new import tariffs, including a 25% levy on goods from Mexico and Canada. The move rattled global markets, sending US stock futures lower and the US dollar higher, reflecting investor uncertainty.
Bitcoin was not the only cryptocurrency to suffer, with other top 10 cryptocurrencies by market capitalization also taking a hit. Dogecoin (DOGE) was one of the biggest losers, losing 9.5% to $0.38, according to data from CoinGecko.
Despite the uncertainty caused by the price drop, experts remain bullish on Bitcoin’s long-term prospects, stressing that such corrections are a natural part of the market. What matters is whether Bitcoin can quickly recover and surpass the $100,000 mark, cementing its position amid a market still searching for stability.
