After US Presidential Election, Bitcoin Still Stands Firmly Above $90,000

Key Points:

• Bitcoin fell nearly 3% over the weekend, marking its sharpest two-day drop since the US presidential election.
• Trump has pledged to establish a Bitcoin stockpile, create favourable regulations, and make the US a global crypto hub.

According to Bloomberg, Bitcoin has just notched its biggest two-day slump since the US presidential election, shedding close to 3% over the weekend before steadying at $90,000 in Asian trading on Monday.

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Bitcoin Price Stays Cautious After US Presidential Election

The Bitcoin price has pulled back as global markets are turning cautious in character, with traders reassessing the potential implications of President-elect Donald Trump‘s highly ambitious crypto agenda.

Trump has promised a friendly regulatory environment for digital assets, including ideas for a US strategic Bitcoin reserve and positioning the nation as a global cryptocurrency hub. Of course, those plans are under scrutiny due to their practicality and timelines for implementation. Industry groups continue to call on Trump to appoint a crypto-friendly SEC chair as Gary Gensler, the current chair, steps down.

Investors Begin to Rethink Crypto Market Amid Regulatory and Economic Shifts

Historically, the cryptocurrency market reacts well to US presidential elections. Bitcoin surged in the aftermath of each of the past four US presidential elections. It surged more than 30% after Trump won on November 5 on optimism about his pro-crypto presidency.

But there’s still uncertainty as investors adjust their expectations over the prospect of Federal Reserve interest rate cuts being pushed further into the future amid a strong US economy, a factor that could impact speculative demand for cryptocurrencies.

Trump had been a digital assets sceptic, but he changed his mind after crypto firms invested millions in election campaigns to promote their interests. The firms are pushing Congress not only for regulatory reforms but also for a broader legal framework that would include cryptocurrency in the U.S. financial system.