Bitcoin’s steep decline has shaken global markets, raising urgent questions about what triggered the crash and what happens next.
Bitcoin has plunged from its early-October peak of $126,000 to below $90,000, wiping out billions in value. The drop follows weeks of political and economic turbulence that pushed investors toward safer assets.
The rally began after Donald Trump returned to the White House and publicly backed cryptocurrencies, helping Bitcoin break multiple records. Expectations of a Federal Reserve rate cut also boosted prices. But sentiment flipped when Trump reignited trade-war fears with China, triggering a global shift away from volatile assets.
Crypto analyst Rachael Lucas says $20 billion worth of Bitcoin trades were liquidated during the crash. Other digital assets, including Dogecoin, also fell.
The longest U.S. government shutdown on record added pressure by delaying key economic data that investors need to predict Fed policy. With some officials signalling no rate cut in December, the dollar strengthened and Bitcoin weakened.
Analysts say Bitcoin could rebound quickly if rate-cut expectations return, but long-standing concerns about volatility and investor wariness remain obstacles to broader adoption.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
