Bitcoin Retreats After Failing to Hit $100,000 Milestone

Highlights:

• Bitcoin Declines After $100,000 Attempt: Bitcoin, trading at $91,100 at the time of writing, has dropped 9% over four consecutive days, marking its longest losing streak since Donald Trump's initial presidential victory.
• Market-Wide Impact: The broader cryptocurrency market has surrendered part of its $1 trillion gain since the U.S. election, with crypto-related equities like MicroStrategy and Coinbase also experiencing notable declines.
• Optimistic Outlook: Despite the correction, industry leaders remain confident in Bitcoin’s bullish trajectory, with expectations of continued market growth into 2025.

Bitcoin, the world’s largest cryptocurrency, has stumbled after failing to breach the $100,000 mark, marking its longest losing streak since Donald Trump’s initial presidential election victory. At the time of writing, Bitcoin was trading at $91,100, reflecting a 9% decline over four consecutive days.

Market Correction Amid Profit-Taking

The cryptocurrency’s inability to reach the $100,000 threshold has prompted traders to secure profits, cooling the speculative momentum that had built up following Trump’s endorsement of digital assets. Noelle Acheson, author of the Crypto Is Macro Now newsletter, noted that while such corrections may appear significant, they are likely to be "fleeting" in the broader market context.

The downturn also affected the wider crypto market, which has relinquished part of the $1 trillion in gains accumulated since the U.S. election on November 5.

Broader Impact on Crypto Stocks

The bearish sentiment extended to crypto-related equities. MicroStrategy, often viewed as a Bitcoin proxy, dropped 13% but remains up over 400% this year. Coinbase, the largest cryptocurrency exchange in the U.S., saw its stock decline by approximately 6%.

Adrian Przelozny, CEO of crypto exchange Independent Reserve, highlighted that the recent correction might have been anticipated. “People have been looking for an excuse to take some profits,” he said. Despite the pullback, Przelozny expressed optimism, stating, “We’re still very confident the current bullish market sentiment will continue into 2025.”

External Economic Factors

In addition to market corrections, cryptocurrencies faced headwinds from broader economic uncertainties. Trump’s announcement of potential tariffs on China, Canada, and Mexico introduced a wave of risk aversion, further pressuring digital assets.

While Bitcoin’s climb to $100,000 remains elusive for now, the market's long-term outlook continues to attract optimistic projections from industry leaders.

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