Bitcoin Post-Election Rally Crushed: Prices Dip Below $84,000 As Tariff Tensions Rise

Bitcoin’s price has plummeted to a four-month low, reaching $81,000, as the “Trump bump” in the markets faded. Investors are now hedging against further decreases, with Bitcoin options showing interest in put options with a strike price of $70,000.

Since Trump’s inauguration, Bitcoin has dropped by 20% from its record highs. Analysts attribute this to Trump’s aggressive geopolitical stance and concerns about inflation. Tariff policies and high short-term inflation expectations are also contributing to caution in the market.

There has been a significant liquidation of bullish bets, with $2 billion wiped out in the past three days. Bitcoin perpetual futures saw a decline in long positions as well. Demand for Bitcoin ETFs has decreased, with $2.1 billion in outflows over the past six days.

The market is searching for a new catalyst to reverse its bearish sentiment, with investors rotating out of cryptocurrencies in a risk-off environment. BTC is trying to find support at $84,578 but has fallen 4.5% in the 24-hour timeframe.

Overall, the market is facing challenges with declining demand for ETFs, geopolitical tensions, and inflation concerns affecting Bitcoin’s price. Investors are cautious and waiting for a new catalyst to turn the market sentiment around.