Bitcoin’s price has plummeted to nearly $90,000 following a huge rally driven by Donald Trump’s U.S. election victory, sparking concerns over the market’s sustainability. The cryptocurrency’s value has dropped by around $200 billion, wiping out about 6% of its combined market.
Crypto billionaire Michael Novogratz warned that bitcoin could fall as low as $80,000 before bouncing back, citing excessive leverage in the system and a high degree of speculation. However, Novogratz also predicted that the price would eventually break above $100,000 per bitcoin, driven by increased adoption and regulatory clarity.
Some analysts believe that the incoming Trump administration’s pro-crypto stance will help push prices higher. Dan Morehead, founder of Pantera, forecasts a potential price surge to $740,000 by April 2028, which would increase market capitalization to $15 trillion.
However, others are warning that the market could be due for another significant correction. FxPro’s chief market analyst Alex Kuptsikevich noted that bitcoin fell below $93,000 on Tuesday and warned of a potential drop to $87,000 if momentum is not sustained around key levels.
Source: https://www.forbes.com/sites/digital-assets/2024/11/27/sudden-panic-sparks-200-billion-bitcoin-and-crypto-price-crash