The price of bitcoin suffered a sharp drop, falling to $92,410 on the night of 25-26 November. After that, the cryptocurrency recovered its position somewhat, but it continues to decline again. Overnight, the asset fell by 6%, and BTC’s capitalisation dropped to $1.82 trillion, according to CoinMarketCap.
Analysts attribute the sharp decline in bitcoin to recent statements by Donald Trump, the 47th president-elect of the United States. He threatened to impose new trade tariffs on imports from China and other countries, which caused a negative reaction in the financial markets, including the cryptocurrency market.
Following bitcoin, most other cryptocurrencies, including altcoins, also experienced a decline. However, the exception was Ethereum, the second largest cryptocurrency by capitalisation, which rose to $3,242.17.
Interestingly, at the beginning of the year, bitcoin showed impressive results, more than doubling in value and rising by 40% in just two weeks after Trump was elected the next US president. Many of the lawmakers elected to Congress are supportive of the cryptocurrency market, which has pushed bitcoin’s value up.
During the election campaign, Trump also actively expressed support for digital assets, promising to make the US the “crypto capital of the planet” and accumulate a national stock of bitcoin.
