The price of Bitcoin (BTC) has fallen below $95,000 as investor sentiment weakens and analysts warn that the so called “Trump bump” is fading.
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Bitcoin had rallied from the time of Donald Trump’s re-election on Nov. 5 of last year through to his inauguration on Jan. 20. The price of Bitcoin peaked at an all-time high of just over $109,300 on the day of Trump’s inauguration. Since then, the price has declined 13% to currently trade at $94,600.
Analysts say that Bitcoin is sliding lower as enthusiasm for Trump’s new administration begins to erode among crypto investors. Many crypto bulls say they are unimpressed by the Trump administration’s crypto policies and lack of action on regulations pertaining to digital coins and tokens.
BTC Reserve?
Many crypto bulls were counting on President Trump to follow through on his campaign promise to set up a strategic Bitcoin reserve, something that hasn’t happened yet. Yet a lot of crypto advocates expected Trump to sign an executive order creating the strategic Bitcoin reserve on his first day in office.
At the same time, macroeconomic factors have begun to weigh on crypto prices. Recent economic data showed that America’s inflation rate rose in January, making it less likely that the U.S. Federal Reserve will cut interest rates anytime soon. So far this year, Bitcoin has risen 1.65%, underperforming the benchmark S&P 500 stock index that has risen 4%.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 4.05% in the last 12 weeks.
