Bitcoin's Sharp Decline Below $100,000
Bitcoin continued its downward trajectory on Monday, dropping below the critical $100,000 threshold. At press time, Bitcoin traded at **$98,207.2, marking a 6.4% decline**. Despite President Trump’s rollout of pro-crypto policies—fulfilling campaign promises—the market reaction has been tepid, signaling unmet expectations. For Bitcoin, which surged dramatically over the past year, sustained bullish momentum now hinges on stronger catalysts.
The broader crypto market mirrored Bitcoin’s slump:
- Ethereum fell over 8%
- SOL plunged 13%
- Dogecoin dropped 12%
According to CoinGlass, extreme volatility triggered 300,000+ liquidations within 24 hours, totaling $838 million in losses.
Trump’s Crypto Policies: High Hopes, Measured Reality
Since Trump’s pro-crypto stance propelled him to victory, Bitcoin had rallied sharply. On January 20, Trump assumed office and later reiterated his support at the World Economic Forum, pledging to make the U.S. the “global hub for AI and cryptocurrencies.”
His subsequent executive order outlined:
- A presidential task force to streamline crypto regulations (chaired by David Sacks).
- A ban on Central Bank Digital Currencies (CBDCs).
- A 180-day deadline for regulatory proposals.
However, the order disappointed traders by not greenlighting a ‘National Strategic Bitcoin Reserve’—a key campaign promise. Instead, it mandated an evaluation of a “digital asset reserve” potentially funded by seized crypto.
Market Reactions
- Nick Forster (Derive Protocol): “The lack of a BTC reserve announcement caps short-term bullish momentum. 83.3% of our Bitcoin options contracts are ‘call sales,’ reflecting skepticism.”
- Brian Armstrong (Coinbase CEO): “Governments holding gold should add Bitcoin to reserves—it’s the emerging standard.”
Bitcoin’s Long-Term Outlook: Bullish Despite Corrections
While Bitcoin faces short-term headwinds, analysts remain optimistic about its 2025 prospects:
Key Indicators
- Binance data: Wallets holding $100+ BTC grew 25% YoY to 30 million, signaling renewed retail interest.
- Richard Teng (Binance CEO): “Trump’s policies could bring regulatory clarity, driving Bitcoin to new highs.”
Price Predictions
- Arthur Hayes (BitMEX): “A drop to $70K–$75K is likely, but year-end targets reach $250K as central banks reinject liquidity.”
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FAQs
Q: Why did Bitcoin crash suddenly?
A: Profit-taking after Trump’s policies fell short of expectations, compounded by broader market liquidations.
Q: Will Bitcoin recover soon?
A: Analysts foresee volatility short-term but predict record highs by 2025 due to institutional adoption and regulatory tailwinds.
Q: What’s the impact of Trump’s crypto policies?
A: They aim to clarify regulations but lack immediate market-moving measures like a Bitcoin reserve.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice.
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