Bitcoin's volatile ride amidst Trump's tariff plans and sec shake-up
Bitcoin prices are falling significantly for the first time since Donald Trump's presidential election victory. Within a few hours, the cryptocurrency's price dropped by several thousand dollars. Bloomberg notes that the digital currency market has cooled.
Since the US presidential elections, bitcoin has surged. The digital currency approached $99,000 but did not break the $100,000 ceiling. Cryptocurrency prices soared last Thursday (November 21) following the announcement of Gary Gensler's resignation as head of the US Securities and Exchange Commission (SEC), which also regulates the cryptocurrency market.
On Thursday, at around 2:00 PM Eastern Time, the bitcoin rate reached $98,500. Following the news about Gensler's resignation, it rose by several thousand. At 10:40 AM, the value of the most popular cryptocurrency was $95,700.
The Bitcoin rate dropped by several thousand dollars in the following days, then rose again. However, the psychological barrier of $100,000 was not breached.
According to my assumptions, the price of Bitcoin could rise to as much as $120,000 by the end of this year. However, Daniel Kostecki, chief market analyst at CMC Markets Poland, forecasts that 2025 will be a test year for the cryptocurrency.
The Bitcoin price has dropped to around $94,000 (morning of November 26). The Bloomberg agency points to the "cooling of enthusiasm related to the president-elect's adoption of cryptocurrencies." The broader cryptocurrency market also seemed stuck at a "dead point," although it increased by $1 trillion since the Republican victory.
Bitcoin prices may be influenced by Trump's announcements that tariffs will be raised for China, Canada, and Mexico. "On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Trump wrote in a post on Truth Social.
Trump added that the tariffs would remain in effect until both countries stop drug supplies, particularly fentanyl, and the influx of migrants into the United States.
After this announcement, futures contracts on American stocks fell.
Trump and cryptocurrencies
Bloomberg points out that Trump has committed to making the USA a global hub for cryptocurrencies by supporting favourable regulations and establishing national bitcoin reserves. The agency wonders how quickly he can implement these changes and whether all are feasible.
Trump was once skeptical of cryptocurrencies but became an advocate after companies involved in digital assets spent a lot of money during the election campaign to promote their interests.
It is estimated that the US government holds about 200,000 bitcoins, mainly from confiscations. According to Trump's announcements, there will be as many as a million in five years, approximately 5% of the total cryptocurrency supply (21 million units)."
