Bitcoin has had a rough month. It was soaring around $126000 in early October, and now it is barely holding above $90000. Almost a quarter of its value has disappeared.
Here is what happened. After Trump won the election, Bitcoin shot up. He had been supporting crypto throughout his campaign, and investors loved it. The price pushed past $100000, and it felt completely unstoppable.
But things changed just as quickly. Trump later made comments about tariffs and growing trade tensions with China. That is when the market began to crack. Confidence fell, people started selling, and the drop turned sharp very fast.
The government shutdown didn’t help either. It dragged on forever and stopped the release of key economic reports that everyone uses to figure out what the Fed’s going to do next. Without that data, nobody really knows if interest rates are getting cut in December or not. Right now it’s looking like probably not, which has made the dollar stronger but hammered Bitcoin and stocks.
One analyst said around $20 billion in Bitcoin trades got liquidated when everything crashed. That’s a ton of people who bet on prices going up and got absolutely destroyed. Dogecoin and other cryptos are hurting too. Some people think it could bounce back quickly if rate cut hopes return, but who really knows at this point?
Conclusion
Bitcoin’s collapse shows just how tied cryptocurrency still is to traditional markets and economic policy, leaving investors guessing about whether this is temporary weakness or something worse.
Also Read: Kraken Chief Blasts UK Crypto Rules
