Crypto Market in Turmoil; Trump’s Bitcoin Warning Sparks Fear

Bitcoin and crypto prices have experienced a considerable drop following a warning from U.S. president-elect Donald Trump.

Analysts have labeled the market’s expectations as “delusional,” causing a stir in the crypto community.

Bitcoin Price Plummets

The bitcoin price has plummeted from an all-time high of over $108,000, dropping toward $90,000 per bitcoin and wiping around $500 billion from the combined crypto market. This considerable decline has fueled fears of an imminent bitcoin price crash.

Former BitMex chief executive Arthur Hayes echoed this sentiment, warning of a potential January bitcoin price crash.

Market’s Delusional Expectations

Analysts have warned that the bitcoin and crypto market has “delusional expectations” for Trump’s incoming administration. K33’s head of research, Vetle Lunde, stated, “It’s highly likely that the market has delusional expectations for the pace of policy changes and will overprice the impact running into the inauguration”. This sentiment has contributed to the recent drop in bitcoin prices.

Trump’s Crypto Promises

Trump has vowed to make the U.S. the world’s bitcoin and crypto capital during his second term. His recently confirmed plan to establish a bitcoin strategic reserve, similar to the country’s oil reserve, has helped spur a bitcoin price boom. However, if these promises fail to materialize, the bitcoin price could plummet further.

The Federal Reserve has expressed concerns about the potential impact of Trump’s policies on the crypto market. Analysts have warned that the Federal Reserve’s “biggest nightmare” could come true in 2025, further contributing to market instability. This uncertainty has led to increased volatility in the crypto market.

Here are some of the current prices for major cryptocurrencies:

• Bitcoin (BTC): $94,447.92
• Ethereum (ETH): $3,338.81
• Tether (USDT): $0.9984
• XRP (XRP): $2.16
• BNB (BNB): $699.33
• Solana (SOL): $185.81
• Dogecoin (DOGE): $0.3162
• USD Coin (USDC): $1.00
• Cardano (ADA): $0.8708
• TRON (TRX): $0.2586

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