Bitcoin faces setback due to pressure from wave of profit-taking


(MENAFN) Bitcoin’s post-US election rally encountered a setback on Tuesday, as the cryptocurrency slipped under pressure from a wave of profit-taking. The world’s largest digital asset fell to USD92,360 at 08:30 GMT before staging a recovery and climbing back above USD93,000. This decline came as market sentiment was negatively impacted by President-elect Donald Trump, who reignited concerns over a potential trade war. His fresh threats of imposing additional tariffs on China and other countries stirred fears, causing volatility in the markets.

Despite the dip, Bitcoin has enjoyed an impressive 40 percent surge since the US elections on November 5. The cryptocurrency reached a record high of USD99,000 just last week, showcasing its strong momentum and investor interest in the wake of the election results. However, Tuesday's drop highlights the volatility that is characteristic of the cryptocurrency market, where sharp fluctuations can happen rapidly, even after a period of remarkable growth.

Ethereum, the largest altcoin by market capitalization, also experienced a decline on Tuesday. The digital asset was trading at USD3,367, marking a daily drop of 3.6 percent. Ethereum’s price movement mirrored that of Bitcoin, as both major cryptocurrencies faced downward pressure due to market uncertainty and profit-taking activity.

The overall cryptocurrency market saw a 5 percent decline for the day, with the total market value estimated at around USD3.22 trillion, according to CoinMarketCap. This dip reflects the broader trend of reduced market confidence amid the renewed geopolitical tensions sparked by President-elect Trump’s statements, which weighed on investor sentiment across the digital asset space.

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