Bitcoin slips as crypto’s postelection honeymoon hits a rough patch
On the rocks… Bitcoin’s kept sliding today, down nearly 10% on the week and briefly dipping below $90K — its lowest price since November. The OG crypto, 16% off its $108K record, had plenty of miserable company. As of this morning, ethereum, Solana, dogecoin, and cardano were all down nearly 20% on the week. It wasn’t just name-brand coins feeling winter’s chill: the CoinDesk 20, an index tracking a basket of crypto assets, was down 12% on the week. Driving the pain:
Hot and heavy: Last week’s stronger-than-expected jobs report saw traders reassess their rate-cut expectations. Now demand for “risk on” assets like crypto and tech stocks may be cooling.
Options open: $940M flowed out of crypto-investment products (like: spot bitcoin ETFs) in the back half of last week.
Not yet newlyweds… but getting a reality check. The crypto industry had been riding high since Trump’s victory in November, banking on a belief that the incoming admin would unlock a favorable regulatory regime and cheerlead key legislation like a stablecoin bill. And while Trump-nominated SEC Chair Paul Atkins is seen as a crypto ally, the reality of DC may be starting to seep in. Analysts suggest a nearly evenly divided House of Representatives could slow down lawmakers’ efforts to rewrite crypto rules.
Relationships need give and take… The crypto industry donated $238M+ in the last election cycle to coin-friendly PACs and candidates. Those $$ helped secure spots for 298 lawmakers in the new Congress, which may’ve helped boost bitcoin’s price to a record high in December. With the fresh Congress now seated and Trump’s inauguration on Monday, investors are waiting to see whether their new relationship is reciprocal.