Crypto takes a breather from its postelection rally as bitcoin approaches $90,000
Bitcoin was trading just shy of $90,000 Monday night after it blasted through the $80,000 level over the weekend.
The crypto market hit pause on its rocket rally that began a week ago following the U.S. election, though investors should expect it to pick up again.
On Tuesday bitcoin edged lower by 1% to $87,440.88, according to Coin Metrics. On Monday, it rose more than 10%, to as high as $89,623.00 at night. Its price is expected by many investors to continue making fresh records on its way to $100,000 later this year.
Bitcoin has risen more than 26% since election day on Nov. 5, when it had reached a new record for the first time since March. Ether was down 3% Tuesday after a 33% gain over the past week.
"Bitcoin is now in price discovery mode after breaking through all-time highs early last Wednesday morning when it was officially declared that Trump won the election," said Mike Colonnese, an analyst at H.C. Wainwright. "Strong positive sentiment is likely to persist through the balance of 2024 and [we] see bitcoin prices potentially reaching the six-figure mark by the end of this year."
The crypto market hit pause after bitcoin's rally toward $90,000 over the past week
Crypto investors have been cheering President-elect Donald Trump's promises to make the regulatory environment more supportive and even friendly toward crypto businesses, which have long struggled with a lack of clarity of the rules of the road.
While bitcoin has long been deemed a safe asset in Washington – that is, not subject to securities laws – the long tail of cryptocurrencies and crypto-related startups have been operating in a riskier grey area.
"That's just shifted 180 degrees," Matt Hougan, chief investment
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it hit 90 crossed to I think 92 and has dropped to 86K. It's a wild ride right now and stability is not something associated with Bitcoin at this point
I won't be shocked if I wake up next week to see Bitcoin at 100K. The excitement is all coming from Trump winning I suppose and I wonder if the opposite would have happened if Harris had won