Bitcoin flirts with lowest price since Trump’s return to office
Bitcoin slid to a 10 month low in Asian trading as market sentiment weakened amid broader asset volatility. The cryptocurrency has logged four consecutive monthly declines, its longest losing streak since 2018, with investors rattled by global mar...
Bitcoin fell close to its lowest level since Donald Trump returned to the White House, extending a sharp selloff amid fragile global market sentiment.
Bitcoin fell to a 10 month low in Asia trading on Monday following a weekend selloff, with sentiment fragile amid broader market turbulence.
The largest cryptocurrency fell as much as 2.5% to $74,541, just shy of its lowest level since Donald Trump retook the White House a little more than a year ago. That was $74,425, recorded on April 7. It remained below $76,000 at 6:30 a.m. in London.
Bitcoin shed nearly 11% in January, marking its fourth straight monthly decline, the longest losing streak since 2018 during the crash that followed the 2017 boom in initial coin offerings. Its latest slump comes amid broad market unrest, with gold continuing to fall on Monday after suffering its biggest plunge in more than a decade at the end of last week.
“A further drop through the 2021 highs around $70,000 would represent a damaging long term confidence hit,” said Caroline Mauron, co founder of Orbit Markets.
Other smaller cryptocurrencies were also weaker, with Ether down 4% and Solana falling 1.6%.
ADVERTISEMENT
A pro crypto White House and surging institutional adoption last year sent Bitcoin to a record price above $126,000, just ahead of a massive selloff. The original cryptocurrency has since plummeted by about 40%.
Nearly $590 million of bullish bets were liquidated in the last 24 hours, according to Coinglass data. As risk sentiment worsened, broader markets in Asia declined on Monday, while gold and silver extended a slump that started on Friday.
“The underlying sentiment remains bearish in the short term. Crypto is tracking overall asset markets and not moving in isolation,” said Damien Loh, chief investment officer at Ericsenz Capital. “I expect the low for Bitcoin in the $70,000 to $74,000 range and the high at around $90,000.”
The deepening rout came after President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair. Warsh developed a reputation as an inflation hawk during his time as a Fed governor, countering investor expectations of a weaker US dollar after Jerome Powell’s term ends in May. The Bloomberg Dollar Spot Index extended an advance after surging the most since last May on Friday.
