Bitcoin Drops to $90,800 on Profit-Taking, Strong Dollar

Bitcoin saw significant volatility, falling to an intraday low of $90,770 before recovering to $93,500 on Wednesday. Its market dominance has fallen to 57.36% amid profit-taking and market turmoil fueled by Trump’s trade policy announcements. At 12:19 p.m., bitcoin was trading down 0.6% at $93,461 in the past 24 hours, while ethereum, the second-largest cryptocurrency, was up 0.46% at $3,426.

“The recent price decline is attributed to options expirations and lower maturity premiums on US Treasuries, which have somewhat reduced the appeal of using bitcoin as a hedge against traditional markets,” said Shivam Thakral, CEO of BuyUcoin.

Despite the challenges, institutional interest in bitcoin remains strong. “With inflows into Bitcoin ETFs and MicroStrategy’s increased holdings, regulatory developments and institutional investment could support Bitcoin’s bullish stance and could lead to a rebound in market sentiment,” Thakral added.

According to CoinSwitch Markets, Bitcoin has fallen to $90,800 after hitting a record high of $99,500 just four days ago on November 22. “This decline is not due to ETFs or institutional investors but to long-term holders selling 128,000 Bitcoin,” CoinSwitch explained.

The most popular cryptocurrency has surged 120% so far this year and about 34% this month, following the election of Donald Trump as US president and the rise of pro-crypto lawmakers in Congress. Trump championed digital assets during his campaign, pledging to make the US the “crypto capital of the world” and create a national stockpile of Bitcoin.