Bitcoin (BTC USD) Retracing As Trump Omits Mention Of Crypto

Bitcoin (BTC USD) and the overall crypto sector saw much excitement in the run-up to Donald Trump inauguration as the 47th President of the United States.

However, Trump’s inaugural speech did not mention cryptocurrency or blockchain technology, which saw a mixed bag of actions on crypto.

Given this omission, industry players and investors have been looking back at what else may be in store for U.S. crypto policy.

Trump had taken positions of both poking fun at and expressing tentative interest in cryptocurrencies before being sworn into office.

During his first term as president, he had been dedicatedly skeptical. He dismissed Bitcoin as “not money” and said it was “based on thin air.”

But in recent years, he changed his stance towards crypto, with projects like an NFT collection, World Liberty Finance, and now the TRUMP meme coin and more.

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The lack of crypto-related statements at the inauguration seems to have dampened the market sentiment. While many had hoped for a pro-crypto policies signal given his campaign promises.

This included establishing a federal Bitcoin (BTC USD) reserve and allowing for cryptocurrency-based fundraising, these remarks disappointed.

At a key point in global financial markets, this silence comes at a critical juncture for the digital asset industry, which is increasingly a major feature of our world.

Bitcoin (BTC USD) Falls Below $105K Amid Market Volatility

As the inauguration drew closer, Bitcoin rallied to over $108,000. Macroeconomic optimism and market speculation that Trump would be a cryptocurrency-friendly President fueled this rally.

Though Bitcoin’s short-term price momentum was hurt by the dearth of explicit reference to digital assets in his inauguration, a reversal soon came into play.

Following the inauguration, Bitcoin (BTC USD) recorded a sharp retracement, falling under the critical support level of $105,000.

At the time of writing, Bitcoin hovered around $104,394, up just 3.21% over the past 24 hours. This however is also a fall from its recent highs.

With this retracement, traders and investors were left guessing whether they would see an even deeper correction as profit-taking picked up and sentiment began to flip.

One of the driving factors in Bitcoin’s pullback is a classic ‘buy the rumor, sell the news’ scenario.

This is a common phenomenon in cryptocurrency markets where prices rise in anticipation of something and fall after the event either does not produce deliverables or measures up to existing expectations.

Part of the issue is that Trump did not bring strong crypto while delivering his speech, and that absence caused a wave of selling pressure.

Could Bitcoin Retrace to $93K?

Technically, Bitcoin (BTC USD) can still retreat further. The $105,000 level is identified as a critical psychological support zone.

Failure to reclaim and hold above this level could open the doors to further declines, with intermediate support levels at $100,000 and $95,000.

The next major support zone is $93,000, where the price has historically seen itself as a floor after periods of consolidation.

CoinRepublic’s quantum prediction model (95% accurate) anticipates a short-term correction to $93,000.

This model combines technical, on-chain, and sentiment views and identifies resistance at $108,000 to $110,000.

It can’t get past this resistance, and it’s been under pressure from selling, particularly as traders lock in profits from the recent run-up in price.

External factors, such as short-term participants’ selling and broader market trends, could expedite Bitcoin’s (BTC USD) decline to the $93,000.