Bitcoin plummets below $102,000: Crypto market faces test of resilience

Bitcoin’s trajectory is rarely a smooth one, and its latest tumble is in stark contrast to what investors and traders expected on the heels of President Donald Trump’s inauguration.

At last check, Bitcoin (BTC) traded at just above $101,000 Sunday night — down 3%.

The Trump factor

Bitcoin enthusiasts were optimistic as Trump began his second term as president, anticipating a wave of pro-crypto policies. Yet, the inauguration speech lacked any nod to digital assets, and the market took notice.

Investors who had bet on a crypto-friendly administration were left disappointed, prompting a wave of sell-offs.

Adding fuel to the fire, a pair of meme coins tied to the Trump brand — dubbed Official Trump (TRUMP) and “Melania” — entered the market with a burst of enthusiasm, only to crash spectacularly.

The Trump token halved in value just days after its debut, while the Melania coin fared even worse, losing 74% of its worth. These flashy but short-lived ventures added instability to an already jittery market.

Economic crosswinds

Meanwhile, robust economic data from the U.S. played a dual role. While the strong performance of traditional markets offered reassurance to some investors, it also diverted capital away from riskier assets like cryptocurrencies. The interplay of these macroeconomic forces further compounded Bitcoin’s struggles.

Glimmers of hope

Despite the turbulence, Bitcoin still holds significant value, trading above $100,000—a level many would have deemed improbable just a few years ago.

In the long term, optimism remains. Larry Fink, CEO of BlackRock, and other crypto bulls and firms that offer exchange-traded funds (ETFs) envision a monumental surge.

Fink predicted Bitcoin could soar to $700,000 as institutional investors deepen their foray into crypto.

What’s next?

For now, the crypto market faces a crucial test of resilience. While Bitcoin’s downturn has shaken confidence, the broader community remains steadfast, seeing these fluctuations as par for the course.

At press time, Bitcoin is valued at approximately $101,477. See below.