Bitcoin had a rough month. It was around $126,000 in early October, and now it’s barely holding on above $90,000. Nearly a quarter of its value has disappeared.
Here’s what happened. After Trump won the election, Bitcoin exploded. He supported crypto throughout his campaign and investors loved him. The price surpassed $100,000 and it seemed completely unstoppable.
But things changed just as quickly. Trump then made comments about tariffs and growing trade tensions with China. That’s when the market started to crack. Confidence fell, people started selling and the fall deepened very quickly.
The government shutdown didn’t help either. It dragged on and prevented the release of key economic reports that everyone uses to understand what the future would be like. The Fed I’m going to do next. Without this data, no one really knows whether interest rates will be cut in December or not. Right now it looks like that’s probably not the case, which has made the dollar stronger but hammered Bitcoin and stocks.
One analyst said around $20 billion in Bitcoin transactions were liquidated when it all crashed. That’s a ton of people who bet on rising prices and got completely destroyed. Dogecoin and other cryptos are also suffering. Some believe the economy could rebound quickly if rate cut hopes return, but who really knows at this point?
Conclusion
Bitcoin’s collapse shows how closely the cryptocurrency is still tied to traditional markets and economic policy, leaving investors wondering whether this is a temporary weakness or something worse.
Read also: Kraken chief slams UK crypto rules
