(Bloomberg) — Bitcoin posted its longest losing streak since Donald Trump’s U.S. election victory, after a failure to hit $100,000 cooled speculative fervor over the president’s embrace of crypto elected.
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The four straight days of declines sent the digital asset down about 9%, which was trading at $91,100 as of 3:23 p.m. Tuesday in New York. The broader crypto market has given up some of its $1 trillion lead since Election Day on November 5.
The difficulty of trying to break $100,000 for the first time “could convince traders that the top has been reached and profits should be locked in now,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter. However, such an episode should be “fleeting”, she added.
Cryptocurrencies also faced a bout of risk aversion earlier on Tuesday after Trump shook markets by promising additional tariffs on China as well as US neighbors Canada and Mexico.
High-flying crypto-related stocks, such as MicroStrategy, also declined. The Bitcoin proxy has fallen about 13%, although it remains up more than 400% this year. Coinbase, the largest US crypto exchange, fell about 6%.
“People were looking for an excuse to make a profit,” said Adrian Przelozny, chief executive of cryptocurrency exchange Independent Reserve. “We remain confident that the current bullish market sentiment will continue through 2025.”
Trump’s promises
Trump has pledged to make the United States the global hotbed of crypto by promoting favorable regulations as well as a national Bitcoin stockpile. Questions remain about how quickly he can make the changes and whether all are achievable.
In a research note, Jaret Seiberg, an analyst at TD Cowen, said the president-elect after his Jan. 20 inauguration “will gain immediate oversight of the Securities & Exchange Commission,” adding that it would be “a positive sign when he will be about relaxing the application of cryptography and facilitating the path to compliance.
Trump, a former crypto skeptic, became a supporter after digital asset companies spent heavily on the campaign trail to promote their interests. Growing signs have emerged in recent days of growing U.S. adoption of crypto.
As a result, about $7 billion flowed into U.S. cash exchange-traded funds after the election, according to data compiled by Bloomberg. But the dozen ETFs saw an outflow of $438 million on Monday as demand waned.
