The post Bitcoin price drop caused by profit-taking and macroeconomic conditions appeared on BitcoinEthereumNews.com.

Bitcoin dropped to $89,440 on January 13, its lowest decline in two months James Toledano, COO at Unity Wallet, said one of the reasons for the drop is profit-taking after Bitcoin hit $108,000 in mid-December The inauguration of President-elect Donald Trump could spark renewed buying interest, Toledano said Bitcoin fell below $90,000 for the first time in two months, dropping 3.6% in 24 hours as the market experienced selling pressure. Data from CoinMarketCap shows that Bitcoin’s price dropped to around $89,000 on January 13. However, at the time of publication, it’s trading over $95,000. Bitcoin drops below $89,000. Source: CoinMarketCap According to James Toledano, COO at Unity Wallet, there are several reasons why Bitcoin’s price fell. “The first is profit-taking, after hitting a peak of around $108,300 in mid-December, the market has seen a massive amount of it, particularly following the election of pro-crypto President-elect Donald Trump,” he said to CoinJournal, adding: “Secondly, while institutional buying has continued contributing to Bitcoin reserves on exchanges hitting a seven-year low, trading volume remains subdued and this could simply be down to a seasonal slow-down.” Macroeconomics weigh on the market Recent analysis suggests that bleak economic expectations drive this bearish sentiment. This includes Trump’s tariff plans, the US Federal Reserve’s cautious approach to interest rate cuts, and a strong dollar. Zach Pandl, head of research at Grayscale Investments, said to CNBC that: “I would attribute the drawdown in the last two days largely to the market starting to appreciate that not every aspect of the Trump policy agenda is going to be positive for Bitcoin – and tariffs do introduce some new uncertainty.” As questions surround Trump’s forthcoming policies, it may have dampened enthusiasm, which can “lead to short-term volatility for an already highly volatile asset,” said Toledano. Some analysts believe Bitcoin can…

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Filed under: News - @ January 14, 2025 9:26 am