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Bitcoin experienced a decline on Thursday following a short-lived rally driven by expectations of crypto-friendly policies under President Donald Trump. Despite initial optimism, the cryptocurrency market faced renewed volatility, with altcoins tracking Bitcoin’s losses.
Bitcoin Highlights
- Bitcoin Price: Fell 2.9% to $102,600.2 by 00:54 ET (05:54 GMT).
- Record High: Briefly reached above $109,000 before Trump’s inauguration earlier this week.
Why Bitcoin Slipped
- Lack of Crypto-Related Executive Orders: Markets were disappointed as Trump refrained from signing executive orders to support the crypto industry, dashing hopes for immediate regulatory clarity.
- SEC Announcement: While the SEC announced a task force to advise on crypto regulation, the lack of specific details or timelines tempered enthusiasm.
- Tariff Threats: Trump’s threats to impose tariffs on major economies dented risk appetite, pulling Bitcoin lower.
Impact of Trump’s Memecoin
- $TRUMP Token: The President’s memecoin, $TRUMP, fell 13.7% to $37.413, continuing its slide from record highs of nearly $80.
- Concerns were raised over the ethics of Trump potentially profiting billions from the token, as he avoided addressing these questions.
Positive Outlook from BlackRock’s CEO
BlackRock CEO Larry Fink expressed optimism for Bitcoin, stating that the cryptocurrency could reach $700,000 if global adoption grows amid concerns over economic and political stability.
- Fink highlighted Bitcoin’s potential as an internationally utilized instrument but clarified that he was not actively promoting the crypto.
- BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund initially saw strong inflows after its launch but has experienced a decline in recent months.
Altcoins Follow Bitcoin’s Decline
The broader crypto market mirrored Bitcoin’s losses:
- Ether (ETH): Down 3% to $3,216.16.
- XRP: Fell 0.7% to $3.1404.
- Solana, Cardano, and Polygon: Dropped between 2% and 4%.
- Dogecoin: Declined by 3.8%.
Market Outlook
While Bitcoin and other cryptocurrencies faced a setback, the long-term prospects remain tied to global adoption, regulatory clarity, and investor sentiment. Larry Fink’s remarks suggest optimism for Bitcoin’s potential, but short-term volatility is likely to persist as markets adjust to new policies and geopolitical developments.
