Bitcoin falls to its lowest level since November as Trump’s rally loses momentum in the run-up to the inauguration

Bitcoin (Bitcoin-dollar) continued its decline on Thursday to touch its lowest levels since November, trading as low as $92,500.

The cryptocurrency’s recent decline comes after it rose to record levels following President-elect Donald Trump’s victory in early November. He – she It first crossed the $100,000 mark in early December And then it exceeded $108,000. The rise in the world’s largest cryptocurrency as well It fueled a rally in cryptocurrency-related stocks.

Trump is seen as a boon to the cryptocurrency industry, which came under tough scrutiny from the Gary Gensler-led Securities and Exchange Commission (SEC) during the Biden administration as the agency looked to mitigate fraud associated with the sector. Gensler announced his plans in November to step down from his position this month.

The next US president said in December Crypto-friendly Paul Atkins will nominate to lead the US Securities and Exchange CommissionTo replace Gensler.

Trump also committed to creating a new role in the White House for a “crypto czar” to oversee Bitcoin policy. Set previous paypal (PYPL) CEO David Sachs for the position.

Anthony Scaramucci, a cryptocurrency investor who worked in the first Trump administration, warned that investors should not get too excited about any immediate changes from what will be the most pro-crypto Congress in history.

“I would just warn people, if you think that on January 20, the switch is going to flip, and everything is going to be better, and it’s going to be better for Bitcoin and the digital asset community, that’s not how Washington works.” He told Yahoo Finance In December.

As Yahoo Finance’s David Hollerith reported at the end of 2024, enthusiasts I don’t see the rally ending anytime soon. Meanwhile, skeptics are warning about the meteoric rise of cryptocurrencies over the past year It could lead to another accident Like 2022.

But in the run-up to Trump’s inauguration, the cryptocurrency rally lost some steam. Bitcoin is down about 6% from its level a week ago, and began its decline on Monday US economic data It raised inflation fears. Investors Withdrew more than $580 million from US exchange-traded funds On Wednesday, according to Bloomberg.

Cryptocurrency-related stocks mostly mirrored Bitcoin’s decline. The precise strategyMSTR), a bitcoin holding company, is down 12.7% since Monday, when shares rose to start the week. Coinbase (currency) decreased by 9.6% during this time frame.

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laubratton.bsky.social. Email her at laura.bratton@yahooinc.com.

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