Photo: Chesnot (Getty Images)
Bitcoin’s price fell back to $91,000 Tuesday afternoon as the leading cryptocurrency reversed course on some recent gains following Donald Trump’s election win.
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After surpassing $98,000 last week, the cryptocurrency’s value dropped more than 6% in the past 24 hours. The reversal has temporarily dashed hopes of Bitcoin hitting the $100,000 mark this week.
And when Bitcoin sinks, other popular digital assets tend to follow suit. Over the last day, Ethereum — the second-largest coin by market capitalization — was down 5%, to $3,300. Solana fell more than 9%, and Elon Musk’s preferred Dogecoin shed almost 12% in value.
The wider crypto market has sunk 6.25% in the past day for a $3.16 trillion market cap. Bitcoin has driven much of that, alone having a market value of about $1.8 trillion. That makes it the world’s eighth-largest asset, pulling ahead of silver with a $1.7 trillion market cap. Bitcoin still falls well short of gold, which is valued at $17 trillion.
Bitcoin has been on a rally since Trump, who positioned himself as the “crypto candidate,” won a second term in the White House earlier this month. Bitcoin has gained almost 35% in value since the election.
The ascent was accelerated by the debut of Bitcoin ETFs (exchange-traded funds) options last week, which represented a pivotal moment in the cryptocurrency industry. These options bridge the gap between the decentralized world of digital assets and traditional finance by offering institutional investors a more familiar and regulated way to access Bitcoin. The ETFs are expected to drive further adoption and liquidity in the market.
Despite broader acceptance by more traditional investors, the crypto market remains volatile and can rise rapidly — but retreat just as quickly. That may help to explain why the digital asset has shied away from the long-awaited $100,000 milestone after getting so close last week.
