Bitcoin dips below $102,000: Crypto faces resilience test

Bitcoin’s trajectory is rarely smooth, and its latest tumble stands in stark contrast to what investors and traders expected in the heels of President Donald Trump’s inauguration.

At last check, Bitcoin (BTC) traded at just over $101,000 on Sunday evening – down 3%.

The Trump factor

Bitcoin enthusiasts were optimistic as Trump began his second term as president, anticipating a wave of pro-Crypto policies. However, the inauguration speech lack Any nod to digital assets and the market took notice.

Investors who bet on a crypto-friendly administration were disappointed, leading to a wave of selling.

Adding fuel to the fire are a pair of meme pieces attached to the Trump brand – dubbed official Trump (ASSET) and “Melania” – entered the market with a burst of enthusiasm, only to accident spectacularly.

The Trump token halved in value just days after its debut, while Melania’s coin fared even worse, losing 74% of its value. These flashy but short-lived ventures added instability to an already nervous market.

Economical cross clothing

Meanwhile, robust U.S. economic data played a dual role. While the strong performance of traditional markets has reassured some investors, it has also diverted capital away from riskier assets like cryptocurrencies. The interaction of these macroeconomic forces has further compounded Bitcoin’s woes.

Sparkle of hope

Despite the turbulence, bitcoin still has significant value, trading above $100,000 – a level many would have considered unlikely just a few years ago.

In the long term, optimism remains. Blackrock CEO Larry Fink and other bulls and crypto firms that offer exchange-traded funds (ETFs) are eyeing a monumental push.

Snitch foreseen Bitcoin could surge to $700,000 as institutional investors deepen their foray into crypto.

What’s next?

For now, the crypto market faces a crucial test of resilience. While Bitcoin’s downturn has shaken confidence, the broader community remains steadfast, seeing these fluctuations as par for the course.

At press time, Bitcoin is valued at approximately $101,477. See below.