Trump effect on bitcoin so far similar to 2016 win
Bitcoin has seen a significant drop of up to $18,000 since its peak prior to Trump's second inauguration, marking a 16.5% decrease in just two weeks. Despite the volatility, bitcoin is tracking similarly to its performance during the lead-up to the 2016 election, with a gain of about 53% in the last 30 days. This is less than the 66% increase observed following Trump’s 2016 victory. Meanwhile, altcoins like ETH have plummeted by 34% recently, although they experienced a 20% recovery. The article underscores the regularity of bitcoin corrections and the uncertainty of when such corrections will stop a bull market. The current drop in leveraged longs indicates hesitant market sentiment despite past recoveries from declines. The analysis highlights that while bitcoin remains relatively stable compared to other cryptocurrencies, the historical context shows mixed returns during election cycles, especially compared to the pandemic-driven changes in 2020.
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