Bitcoin tests $73,000, erasing gains since Trump's election night win
The recent weeks have been challenging for the cryptocurrency market. The value of Bitcoin (BTC), the leading cryptocurrency, has fallen to the $73,000 level, effectively erasing all price increases achieved since Donald Trump's victory in the 2016 US presidential election.
According to data from analytics firm Glassnode, 44% of the total bitcoin in circulation is currently "underwater," meaning holders of these coins acquired them at higher prices. This is due to the fact that the cryptocurrency has lost about 30% of its value over the past month.
This dynamic strongly contrasts with the upward trend observed in the cryptocurrency market since November 2016, when Donald Trump won the US presidential election. Over the next four years, the bitcoin exchange rate grew by more than 10 times, reaching a historic high of $69,000 in November 2021.
However, in recent weeks, the market has been experiencing increased volatility, driven in part by the tightening of the US Federal Reserve's monetary policy, which is fighting record inflation. In addition, geopolitical tensions around Ukraine are also putting pressure on cryptocurrency assets.
Despite the current difficulties, most experts maintain a positive view on the long-term prospects of bitcoin. In their opinion, the cryptocurrency remains an attractive asset for investors seeking to diversify their portfolios in the face of high inflation and geopolitical instability.