Analysis: The recent decline in Bitcoin is a much-needed correction to eliminate overbought, not a reversal downward

Odaily News Bitcoin has recorded its longest losing streak since Trump won the US election. As of Monday, Bitcoin has fallen about 6% for three consecutive days. The cryptocurrency market has grown by $1 trillion since Election Day on November 5, but it is also stagnating. Noelle Acheson, author of the "Crypto Is Macro Now" newsletter, wrote that the difficulty of Bitcoin's first attempt to break through $100,000 "may convince traders that the market has peaked and profits should be locked now." But she added that any such event should be "short-lived." Adrian Przelozny, CEO of cryptocurrency exchange Independent Reserve, said: "People have been looking for reasons to take profits. We remain very confident that the current bullish market sentiment will continue into 2025." In addition, TD Cowen analyst Jaret Seiberg said in a research note that Trump "will immediately gain control of the US SEC" after his inauguration on January 20, adding that this would be "a positive signal in terms of relaxing cryptocurrency enforcement and promoting compliance." More than $7 billion poured into US spot Bitcoin ETFs after the election, and these ETFs currently have a total of $105 billion in assets. Tony Sycamore, market analyst at IG Australia Pty, said the recent Bitcoin pullback was “a much-needed correction to remove overbought readings, rather than a reversal lower or anything sinister,” adding: “It’s also a reminder that markets, even crypto markets, don’t move in a straight line indefinitely.” (Bloomberg)