Trump's Bitcoin Warning Sends Shockwaves Through Crypto Market, $500 Billion Vanishes

‘Delusional’ Trump Bitcoin Price Warning Suddenly Rocks Crypto Market

The crypto market has been shaken by a warning from Forbes, highlighting the potential for significant volatility as Donald Trump's administration prepares to take office. The bitcoin price, which had reached an all-time high of over $108,000, has plummeted towards $90,000 per coin. This drop wiped out approximately $500 billion from the combined crypto market value amid fears of an impending crash.

K33's head of research Vetle Lunde expressed concerns about "delusional expectations" regarding policy changes under Trump's leadership. With his inauguration set for January 20th and promises to make the U.S. a global hub for cryptocurrency through initiatives like establishing a strategic bitcoin reserve similar to oil reserves, traders are on edge about possible executive orders that could impact prices significantly.

Bitcoin is Flashing a Sell Signal According to Technical Analyst

A report from Markets Insider reveals technical analyst Katie Stockton’s prediction that Bitcoin may be heading into a multiweek correction phase with potential support around $84,500—a 10% decline from current levels. Recent trading patterns have triggered what she describes as an intermediate-term 'sell' signal due to negative short-term momentum indicators such as daily MACD and moving averages.

Despite this bearish outlook in the near term, Stockton remains optimistic about Bitcoin's long-term prospects citing positive monthly indicators supporting continued growth beyond early setbacks next year.

Bitcoin Set For First Monthly Fall Since August Amid Fed Rate Concerns

According to Investing.com reports, while Bitcoin rose slightly amidst low year-end volumes reaching up to $94k recently; it faces its first monthly downturn since August. This is largely attributed to the Federal Reserve’s hawkish stance limiting rate cuts expected in the upcoming months. These actions affect speculative assets including cryptocurrencies, negatively impacting their valuations overall despite previous gains seen earlier following election results which initially boosted them before profit-taking ensued.

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