Bitcoin Dips as Investors Await Trump’s Crypto Policy
Bitcoin experienced a slight decline on Monday, taking a breather after a weekend rally. The market sentiment was cautious as investors awaited more clarity on crypto policy under the upcoming U.S. President, Donald Trump. Additionally, concerns were raised over potential distributions by the defunct exchange Mt. Gox, which recently moved over $2 billion worth of coins from its wallet. This move typically signals a distribution event, as Mt. Gox still holds significant amounts of Bitcoin that it plans to return to creditors.
- Bitcoin fell by 0.4% to $99,439.8 by 00:01 ET (05:01 GMT).
Trump’s Influence on Crypto Market
Last week, Bitcoin surged to a record high of $103,719.4 amid optimism surrounding crypto-friendly regulations expected under President-elect Donald Trump. The market cheered as Trump nominated a crypto-friendly Chair for the Securities and Exchange Commission, along with other pro-crypto candidates for key positions. Trump has expressed intentions to implement regulations that would make America the "crypto capital" of the world. He also hinted at the establishment of a Bitcoin Strategic Reserve, although analysts remain skeptical about this proposal.
- Traders are eagerly awaiting more cues on crypto policy as Trump’s inauguration approaches on January 20.
Altcoins Shine Amid Regulatory Optimism
In recent weeks, altcoins have outperformed Bitcoin, fueled by hopes of increased regulatory clarity shifting market focus away from Bitcoin. Notably, Ethereum saw significant gains, reaching six-year highs as traders speculated that the SEC might drop its ongoing lawsuit against the issuer under the new administration. The decline in Bitcoin dominance, which fell to a one-month low of around 55%, further supported the trend of altcoin outperformance.
- Altcoins are currently trading at potentially attractive discounts compared to Bitcoin.
Current Crypto Market Trends
While major altcoins performed better than Bitcoin in the recent past, their rally also cooled off in line with Bitcoin’s decline on Monday. Ethereum dropped by 1% to $3,939.69, while Binance Coin fell by 0.5% to $2.4821. Other cryptocurrencies like Cardano, XRP, and Dogecoin also experienced slight declines, with meme token Shiba Inu shedding 4.6%.
In conclusion, the crypto market is closely watching for any developments in crypto policy under the new U.S. administration led by President-elect Donald Trump. The market dynamics are shifting, with altcoins showing resilience and potential for growth as regulatory optimism prevails. Traders and investors should stay informed and monitor these trends to make informed decisions in the ever-evolving crypto landscape.