- Bitcoin hit a record $108,364 but quickly dropped to $92,118, leaving investors anxious.
- Trump’s policies and SEC changes could boost BTC long-term despite short-term market jitters.
- Analysts see key resistance at $97,500–$99,800 and breaking it could spark a major rally.
Bitcoin (BTC) reached an all-time high of $108,364 on December 17, and the market is already rejoicing. However, on December 20, it fell sharply to $92,118. This sudden price drop has caused investors to become anxious about whether Bitcoin is ready to bounce back or if more losses are expected in the near future.
Arthur Hayes, the co-founder of BitMEX, revealed that Bitcoin may struggle in the short term. He raises the risk of a ‘sell the news’ event around Trump’s inauguration. As for the economy, Hayes notes that Trump’s policies might lead to the dollar’s devaluing, which would provoke a temporary sell-off in the market. Hayes sees this as a positive sign for Bitcoin in the long run but expects a short-term pullback before any large gains.
Bullish Outlook for Bitcoin
However, some analyses suggest positive outlooks on Bitcoin’s future. Analyst Ali Martinez identifies a major resistance zone at $97,500 – $99,800. If Bitcoin surpasses this range, it may reach an all-time high. According to Martinez, if the price can close above this level, this could be a good setup for a big run higher in the near term.
Crypto analyst Crypto Rover also agrees that Bitcoin’s uptrend remains intact. He points out current reversals from the key support levels, indicating that the market is still bullish. Bitcoin’s price movement indicates it has not reached its apex, and if it breaks through its resistance levels, the next phase of the bull market may be in motion.
Trump’s Influence on Bitcoin
In July, incoming US President Donald Trump endorsed the idea of cryptocurrency at a Bitcoin conference. In November, his victory in the U.S. presidential election also helped Bitcoin gain momentum as markets geared up for positive policies. Recently, Trump disclosed plans to form a US strategic Bitcoin reserve, thus changing the United States’ position on cryptocurrency. In addition, Senator Cynthia Lummis has come out to support the Federal Reserve in holding Bitcoin. She stated:
I want our federal government to have a Strategic Bitcoin Reserve – buying 200,000 $BTC a year for 5 years, and holding it for 20 years.
Trump’s impact on the crypto market increased due to the appointment of Paul Atkins as the new chair of the SEC. This choice is considered a step towards a more favourable U.S. approach to cryptocurrencies. This gave investors hope that the government could develop better policies and a more comprehensible regulation of cryptocurrencies, hence lifting the value of Bitcoin.
Bitcoin Could Hit $200K by Mid-2025, Says Bitfinex AnalystsAs the political environment has shifted and the market could crash anytime in the future, Bitcoin’s future is still hanging in the balance. However, the next few weeks should give a better idea of the direction of events. If Bitcoin manages to stand and even break the resistance level, it may keep rising. Otherwise, one more drop is possible before the market starts climbing up.
