Bitcoin price tumbles amidst changes in Trump's trade policy
Bitcoin prices are falling sharply for the first time since Donald Trump won the presidential elections. Within a few hours, the cryptocurrency's price dropped by several thousand dollars. The digital currency market has cooled, notes Bloomberg.
Since the US presidential elections, bitcoin has rallied. The digital currency approached £71,000 but didn't break the £72,000 ceiling. Cryptocurrency prices soared last Thursday (21st November) after Gary Gensler, the head of the US Securities and Exchange Commission (SEC), which also regulates the cryptocurrency market, announced his resignation.
On Thursday, after 7 PM Greenwich Mean Time, bitcoin's price reached £71,000, rising by several thousand after the news of Gensler's resignation. At 4:40 PM, the value of the most popular cryptocurrency was £69,000.
In the following days, bitcoin's price fell by several thousand dollars and rose again. However, it didn't manage to break the psychological barrier of £72,000.
Assumptions are that the price of bitcoin may rise to £86,000 by the end of this year. However, Daniel Kostecki, chief market analyst at CMC Markets Poland, predicted that 2025 will be a test year for cryptocurrency.
The bitcoin price has dropped to approximately £67,000 (morning of 26th November). Bloomberg Agency points to the cooling enthusiasm related to the president-elect's adoption of cryptocurrencies. The broader cryptocurrency market is also at a "standstill," although it has grown by £820 billion since the Republican victory.
Trump's announcements regarding tariff increases for China, Canada, and Mexico may influence Bitcoin's price. "On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Trump wrote in a post on Truth Social.
Trump added that the tariffs will remain in effect until both countries halt the supply of drugs, particularly fentanyl, and the influx of migrants into the United States.
Following this announcement, futures contracts for American stocks fell.
Trump and cryptocurrencies
Bloomberg recalls that Trump has committed to making the USA a global home for cryptocurrencies by supporting supportive regulations and national bitcoin stocks. The agency wonders how quickly he can implement changes and if all of them are feasible.
In the past, Trump was a cryptocurrency sceptic but became a supporter after digital asset companies spent a lot of money during the election campaign to promote their interests.
It is estimated that the US government holds around 200,000 bitcoins, mainly from confiscations. According to Trump's announcements, this number will reach one million within five years, about 5% of the total cryptocurrency supply (21 million units).
