Bitcoin experienced a sharp decline over the past weekend, recording its biggest two-day drop since the US election. This decline caused caution in global markets, as traders began to assess the impact of the economic policies that President-elect Donald Trump might adopt on financial markets.
Cryptocurrencies fell by nearly 3% on Saturday and Sunday, prompting investors to take cautious positions. However, the market quickly recovered some of its losses. As of Monday morning, Bitcoin was significantly higher, trading near the $92,000 level. This rise came amid growing optimism for a market recovery in the coming days, as the currency recorded a 1% increase in the last 24 hours.
On the other hand, the timing of how President Trump will implement his promises regarding cryptocurrencies remains unclear. One of the most prominent promises he mentioned was the creation of a US reserve of Bitcoin, an idea that faces many questions about its feasibility and implementation. It remains to be seen how this will affect US monetary policy and its impact on the digital currency markets in general.
Uncertainty continues to drive the market, especially with contradictory statements from politicians and analysts. In light of this, traders are keen to monitor any moves that could decisively impact the market. Despite the recent volatility, Bitcoin continues to target new record levels, driven by investors’ eagerness to achieve more gains.
At the same time, some are noticing a growing public interest in digital currencies. This interest is fueled by continued institutional support, in addition to the growing conviction in the idea of cryptocurrencies as a safe investment tool in light of global economic volatility. With these factors, it is still difficult to predict what will happen in the near term.
Bitcoin price may reach more than $ 200,000
While Bitcoin (BTC) is still trading below the six-figure mark, some forecasts suggest that its price could exceed $200,000 in the near future. Bitcoin is expected to double from its current price of around $90,000.
These forecasts are based on a measure called “260-day fractal complexity.” This indicator measures the changes in Bitcoin’s price and shows the complexity of these changes. Observers note that this indicator remains high, as it has not dropped below the 1.20 level, the threshold signaling that the market may be at its peak. Experts believe that the decline in this indicator may coincide with Bitcoin’s price reaching $200,000 or more.
Fractal dimension analysis is based on studying recurring patterns that occur in financial markets. The analysis suggests that when the indicator exceeds this threshold, the market is in a bullish phase that may lead to significant gains. Analysts widely use this type of analysis in mathematics and nature to understand patterns that repeat over different time periods. Traders consider this indicator an accurate tool for predicting market movements. In the past, similar indicators have indicated significant price shifts, and if the current trend continues, Bitcoin could be on its way to new record highs.
While some concerns remain about market volatility, many analysts believe that Bitcoin retains significant potential for long-term growth. With the increasing reliance on digital currencies as a means of hedging against inflation and economic crises, Bitcoin is likely to see strong support from institutions and individual investors alike.
On the other hand, regulatory challenges are likely to increase in the future, which could affect the price of Bitcoin. However, if economic conditions continue to support digital currencies, these expectations may actually come true.
Bitcoin price may reach more than $ 200,000
While Bitcoin (BTC) is still trading below the six-figure mark, some reports suggest that its price could double to over $200,000 in the future. This massive growth is based on a metric called “260-day fractal complexity,” which measures recurring patterns in Bitcoin’s price movements.
The higher the fractal complexity, the more difficult it is to interpret price trends. This makes market movements more volatile. Conversely, if the reading falls, it indicates that price patterns have become more stable and predictable. Low readings can reflect overconfidence among traders that prices will continue in a certain direction, which is often seen at bull market peaks.
Excitement waning
In U.S. markets, enthusiasm for President-elect Donald Trump’s pro-business policies has waned. This decline is due to growing concerns about inflation, trade tariffs, and deficit-funded tax cuts. Investors scaled back expectations for a Fed rate cut due to the economy’s strength, which could challenge cryptocurrencies if macroeconomic liquidity conditions change.
Bitcoin has been in a frenzy since posting record gains following the November 5 election. Market analyst Mark Zuckerberg said that much of the positive news has already factored into the price of the currency.
Positive Market Actions
On the other hand, President-elect Trump has announced his pledges for a regulatory framework that supports cryptocurrencies. These pledges include creating a strategic reserve of Bitcoin and turning the United States into a global hub for the sector. It is worth noting that Trump was initially skeptical of cryptocurrencies, but he changed his stance after crypto companies invested heavily in supporting their interests during the election campaign.
