A Sharp Decline Looms: Can President Trump’s Words Revive Bitcoin’s Momentum?
On the eve of U.S. President Donald Trump’s inauguration, the flagship cryptocurrency continues to struggle in gaining upward momentum. Its persistent hovering near the psychological threshold of $100,000 fuels optimism among those who, encouraged by recent highs (and record-breaking performances), have doubled down on their belief in the much-debated crypto market.
During the U.S. presidential elections, Bitcoin prices responded positively to Trump’s ascension to the White House, reflecting broader market sentiment.
Now, however, just hours before the highly anticipated inauguration, President Trump’s silence appears to cast a shadow over the cryptocurrency sector.
Nonetheless, reports indicate that the incoming administration is already assembling a council of established experts to spearhead comprehensive legislation for the expansive cryptocurrency sphere.
Market participants await further developments
News surrounding the U.S. Department of Justice has added to market concerns. Following a federal judge’s approval, the department is set to sell 69,370 Bitcoins (currently valued at over $6 billion)—an amount confiscated in connection with the Silk Road case.
Such a significant influx of liquidity into the market will likely have an immediate and pronounced impact on Bitcoin’s short-term performance.
From a technical perspective, our prior optimism seems increasingly tenuous. The price chart reveals a prolonged lateral movement that has persisted for several weeks.
Last November, Bitcoin initially breached the $100,000 mark, reaching new highs above $108,000. However, it subsequently underwent a phase of profit-taking. In the weeks that followed, Bitcoin has hovered around the $94,000 level, a movement that aligns with our earlier analysis of key support at $93,415.
A harsh reality?
The broader crypto community has been reticent to openly address a harsh reality, though murmurs of it eventually emerge: the potential for a significant downward correction.
Consensus among analysts suggests a critical target at $75,000, where Bitcoin may trend in the event of a decline.
As has often been the case in this market, explanations for dramatic price shifts will likely surface post hoc, offering a range of justifications for any severe rise or fall.
For investors considering entry into this high-stakes arena, the risk associated with Bitcoin’s volatility remains significant.
A potential decline of up to 25% looms over current pricing levels—a figure that many may find daunting. Is it too much? Perhaps, but it’s a reality that seasoned market participants must confront.
As always, attempting to outpace the market—or worse, predict it prematurely—is rarely a sound strategy. For now, we await further signals from President Trump and his team. Their words could shape the future of the cryptocurrency landscape. The world is listening.
Original article published on Money.it Italy 2025-01-14 11:58:30. Original title: Per Bitcoin il rischio è dietro l’angolo. Molti lo pensano ma nessuno lo dice (chiaramente)
