Why is Crypto down? | The Standard
Experts have reported how, as of Monday, the cryptocurrency market decreased by 6.5 per cent, with the entire world affected by the share drop.
Revolut reported that the price of Bitcoin has decreased on Monday by one per cent in the past hour, and by 4.22 per cent in the past 24 hours. Bitcoin’s price has also fallen by 6.89 per cent in the past week. The current price is £80,201.08 per Bitcoin (BTC). Currently, Bitcoin is valued at 8.02 per cent below its all-time high of £87,193.27, according to Coinbase.
Why was it expected crypto would rise after Donald Trump’s return to office?
It was hoped new pro-crypto regulations would be brought in, plus tax cuts and less regulation after he assured the electorate it would be one of his priorities once in office.
The market, fuelled by optimism, was anticipating a massive surge.
The crypto and bitcoin price is closely linked to the American stock market, with bitcoin and crypto seen in recent months to be trading in line with high-growth tech stocks that have surged due to the rush into artificial intelligence.
Mr Trump has been busy since taking office following his inauguration; however, the expected crypto hike has not happened and, in fact, the market has crashed.
In his inaugural speech, the new US leader did not even mention crypto, leading to many feeling confused and nervous about what they had invested in.
Without clear signals about supporting the market, it started to drop.
There was widespread selling of stock and crypto, with many cryptocurrencies, including Bitcoin, suffering a steep decline.
What has Donald Trump said now?
On Friday, the President took a stance on the currency, ordering the creation of a working group to look at the current state of crypto.
The executive order asked for a working group to be set up to advise the White House on the best course of action.
The group will be responsible for proposing a framework for US assets within six months, including looking at the creation of a crypto stockpile.
But the order fell short of confirming that America would establish their own Bitcoin reserve as a country – something promised on the campaign trail.
What has AI got to do with crypto declining?
There have been concerns that new and emerging AI will tank the market further.
It is worried that the new model will hit tech valuations.
The Chinese firm poses a ”potential threat to US equity markets by disrupting the current US AI market dominance”, said a report by market experts QCP Asia on Monday.