Bitcoin falls to lowest level since November as Trump rally loses steam in inauguration run-up
Published On Jan 9, 2025, 10:24 AM
Bitcoin has fallen to its lowest level since November, hitting $92,500. The decline follows a strong rally resulting from President-elect Donald Trump's victory, where Bitcoin had briefly surpassed $100,000. Investor sentiment is mixed as concerns arise about potential economic shifts influencing inflation. Additionally, over $580 million was withdrawn from US Bitcoin ETFs recently, indicating reduced investor confidence. Cryptocurrency-related stocks, such as MicroStrategy and Coinbase, have also experienced significant declines mirroring Bitcoin's fall. Experts caution that immediate improvements in the regulatory landscape for cryptocurrencies are unlikely despite the incoming administration's friendly stance toward the crypto industry.
Stock Forecasts
MSTR
Negative
MicroStrategy and Coinbase's stock prices are closely tied to Bitcoin's performance. As Bitcoin struggles to regain its footing, these stocks may continue to experience bearish sentiment, exacerbated by market volatility and investor withdrawals from ETFs. It’s likely that their downturns will persist in the short term, given the current trends in the cryptocurrency market.
COIN
Negative
Coinbase's dependency on Bitcoin trading volume means it is likely to be negatively impacted by Bitcoin's decline. The regulatory environment remains uncertain, and substantial ETF withdrawals indicate a cooling interest in the market. These factors combined suggest that Coinbase's stocks will likely continue their downward trajectory in the near future.
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