Business Sandesh Indian Newspaper | Articles | Opinion Pieces | Research Studies | Findings & News | Sandesh News
Bitcoin prices dipped on Monday, cooling off after a weekend surge as investors braced for further cues on cryptocurrency policy from President-elect Donald Trump’s incoming administration.
Adding to the market’s caution were concerns over potential Bitcoin distributions from the defunct exchange Mt. Gox. A wallet associated with the exchange recently moved over $2 billion worth of Bitcoin, often signaling an upcoming distribution event. Mt. Gox still holds billions of dollars in Bitcoin intended for creditor repayment.
At 09:06 ET (14:06 GMT), Bitcoin traded at $99,200, marking a 1.3% decline.
Trump’s Crypto Policy Rally Hits Pause
Bitcoin’s weekend rally to an all-time high of $103,719.4 was fueled by optimism over Trump’s pro-crypto policy proposals. Recent nominations of crypto-friendly leaders for key government roles, including the SEC Chair and Treasury Secretary, bolstered investor confidence.
Trump has vowed to introduce crypto-friendly regulations during his second term, aiming to position the U.S. as the “crypto capital” of the world. He has also floated the idea of a Bitcoin Strategic Reserve, though analysts remain skeptical about its feasibility.
Despite these promises, traders now await further clarity on Trump’s policy direction ahead of his January 20 inauguration.
Altcoins Outperform Bitcoin Amid Regulatory Optimism
Altcoins have emerged as the standout performers in recent weeks, buoyed by hopes that regulatory clarity will shift market focus from Bitcoin to diverse use cases.
XRP led the charge, soaring to six-year highs as traders speculated that Trump’s administration might resolve the SEC’s lawsuit against Ripple.
Bitcoin dominance—a measure of Bitcoin’s share of the total crypto market cap—fell to a one-month low of 55%, signaling stronger interest in altcoins. This drop has given altcoins like XRP and Ethereum a chance to shine, with some trading at appealing discounts compared to their recent highs.
MicroStrategy Doubles Down on Bitcoin
MicroStrategy, a major Bitcoin bull, announced its acquisition of 21,550 Bitcoin for $2.1 billion between December 2 and December 8. The company funded the purchase by selling 5.42 million shares, generating $2.13 billion in proceeds.
With this latest purchase, MicroStrategy now holds 423,650 Bitcoin, acquired at an average price of $60,324 per coin, totaling an investment of $25.6 billion. This marks the fifth consecutive week of significant Bitcoin purchases by the firm, underscoring its bullish stance on the cryptocurrency.
Altcoins Lose Steam Following Bitcoin Dip
- Major altcoins, which have outperformed Bitcoin in recent weeks, also experienced pullbacks on Monday.
- Ethereum (ETH): Down 2.5%, trading at $3,896.07.
- XRP: Fell over 5%, now priced at $2.43, despite its recent rise to the third-largest cryptocurrency.
- Solana, Cardano, and Polygon: Dropped between 3% and 7.7%.
- Dogecoin: Shed approximately 5%.
- The overall market appears to be cooling as traders reassess the next phase of the bull cycle.
