Recently, Bitcoin's price experienced significant swings, reaching a new record high before quickly falling. These changes are driven by several factors, including U.S. elections and official statements.
Bitcoin's Rise and the Impact of Elections
Since the start of the quarter, Bitcoin's price has been rising, with the U.S. election results adding momentum. It quickly reached highs over $108,000, hitting a fresh all-time high before declining.
Jerome Powell's Statements and Their Impact
Comments from Fed Chair Jerome Powell raised market concerns. He noted that the agency does not plan to own Bitcoin, contributing to the price's drop below $100,000.
Bitcoin's Prospects and Possible Scenarios
In the past 24 hours, over $400 million in contracts were liquidated, raising concerns about the market's state after Donald Trump's inauguration. Despite current volatility, analysts like Lark Davis predict a long-term rise in Bitcoin price and a preparation of the market for a new activity surge.
Current Bitcoin price fluctuations highlight its volatility and dependence on political and economic factors. Investors will be closely monitoring changes in the political landscape in the near future.
