The cryptocurrency market is experiencing high volatility after Bitcoin reached all-time highs and now remains below $100,000. Analyst Fernando Pereira, from the Bitget brokerage, warns that Bitcoin historically experiences significant drops in January after the US elections, with an average decline of 30% before resuming its rise.
Factors such as the election of Donald Trump and the victory of congressional candidates supported by crypto investor groups have boosted the price of $BTC . In addition, the reduction of interest rates in the US, Europe and China have contributed to keeping the demand for digital assets high.
However, experts question whether Bitcoin's rally is sustained or just speculation. The launch of Bitcoin exchange-traded funds (ETFs) in the US has also increased institutional participation in the cryptocurrency market.
The current scenario is uncertain, with some analysts skeptical about Bitcoin's potential for significant inroads into real-world use cases. The market is waiting for concrete measures from the elected government in the US regarding cryptocurrencies.
