Crypto volatility picks up as Trump-fueled rally starts to fray
crypto as the optimism sparked by President-elect Donald Trump’s embrace of the sector begins to cool.
Bitcoin fell below $95,000 at one point on Tuesday, while an index of smaller digital assets slid as much as 15%, one of its biggest intraday drops of 2024.
Speculators plowed into crypto after the US election on Nov. 5, spurred by Trump’s pledge to create a supportive regulatory backdrop and his controversial backing for a national Bitcoin reserve. At the same time, the notorious volatility of digital assets leaves investors prone to exiting bets quickly.
Bitcoin hit a record $103,800 on Dec. 5 but subsequently struggled to stay above the six-figure level. The overall crypto market has shed about $200 billion in the past 24 hours, based on figures from tracker CoinGecko.
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Recent trading points to “deleveraging across the crypto ecosystem,” said Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC. One trigger may be caution ahead of US inflation data on Wednesday that may color expectations for
