Bitcoin dropped nearly 7% on Friday, falling to $92,144 before steadying at $97,851. The move came after an historic surge past $100,000 earlier in the day. Traders are taking profits, with demand for bearish wagers such as put options increasing.
The US Securities regulator’s new head is expected to push the market further into mainstream. President-elect Donald Trump has vowed to undo a Biden administration clampdown on digital assets and turn the US into the global hub of crypto. Trump also announced David Sacks as the White House czar for artificial intelligence and cryptocurrency, promising a legal framework for the industry.
Despite $33 billion of net inflows into US Bitcoin exchange-traded funds this year, the rally’s 45% advance since Election Day raises questions about its sustainability. Analysts believe the recent surge may be due to a “blow-off top,” with the market potentially entering a consolidation phase in days or weeks ahead.
Source: https://finance.yahoo.com/news/bitcoin-briefly-slumps-nearly-7-004713635.html