Bitcoin Sees Big fall, Price declines to Less than USD 92,000

Earlier this month, Bitcoin had gained a lot after the victory of Donald Trump in the presidential election in America. This momentum came to a halt on Tuesday. The price of Bitcoin was down by more than two percent and was trading at $91,717. There was a huge decline in the crypto market too.

Bitcoin had continuously made new highs since Trump’s victory. The price of this most popular cryptocurrency had reached close to one lakh dollars. However, after this, Bitcoin declined due to heavy selling pressure. Long-term holders of Bitcoin have a major stake in this selloff. Market analysts say that $100,000 is an important resistance for Bitcoin.

The price of Bitcoin has increased more than double in the current year. It has increased by more than 40 percent since Trump’s victory. The crypto market also grew significantly after Bitcoin Exchange Traded Funds (ETF) were approved in the US earlier this year. The price of Bitcoin has increased by approximately 130 percent this year. A new government led by Trump will take charge in America early next year. The agenda of this government may include making laws for crypto. Recently, Jay Clayton, former chairman of the Securities and Exchange Commission (SEC) in the US, had said that the new government could make a law to control cryptocurrencies. He said that he is in favor of reducing the regulatory burden which will encourage listing of companies. Clayton said, “I believe that there will be legislation for crypto. If you can deal with some of the problems at the executive or administrative level then it becomes easier to legislate for crypto.”

Under the government of current US President Joe Biden, regulators had demanded strict enforcement action against crypto-related firms. However, these regulators did not accept the industry’s demand for making regulations. The prices of many cryptocurrencies including Bitcoin had increased due to Trump’s victory in America and the arrival of crypto supporting candidates in Congress.