Bitcoin declined today for the first time since the U.S. election despite forecasts that it would surpass the symbolic $90,000 mark.
Investors have been pouring funds into assets expected to benefit from Donald Trump’s second term. During this term, he has pledged to increase tariffs on imports from key trading partners, introduce tax cuts, and relax regulations.
The world’s largest cryptocurrency, Bitcoin, was trading near a record high of $90,000 this morning, having surged 30% in the week following the election. However, it fell to $86,436 by the afternoon, marking a 2.4% drop since the morning session.
Chris Weston, head of research at Pepperstone, commented to clients: “The key question for traders who are not yet involved is whether there’s still upside potential in this heated rally, or if it’s better to wait for a pullback and a cooling of the current trend.”
Elsewhere, the euro and Chinese yuan faced heavy selling pressure, as investors weighed the risks of a sharp rise in tariffs and ongoing struggles in the Chinese economy, despite Beijing’s extensive stimulus efforts. The pound also fell 0.9% against the dollar today.
