Bitcoin Price Analysis: BTC Drops After Setting New ATH On Monday

Bitcoin (BTC) surged to a new all-time high on Monday, hours before Donald Trump’s inauguration, driven by the prospect of a crypto-friendly administration stacked with industry insiders. 

However, the price declined sharply after hitting its latest milestone as selling pressure yanked BTC to an intraday low of $100,173 during the ongoing session. 

US To Hit Debt Ceiling. Will Bitcoin Soar Or Suffer?

The US is expected to hit its $36 trillion debt ceiling on Tuesday, effectively barring it from borrowing from the public to fund operations. While opinion is divided on its impact, analysts suggest it could be a positive development for risk assets and Bitcoin (BTC). Outgoing Treasury Secretary Janet Yellen said in an official announcement, 

“The debt limit does not authorize new spending, but it creates a risk that the federal government might not be able to finance its existing legal obligations that Congresses and Presidents of both parties have made in the past.”

Yellen suggested the Treasury would take extraordinary measures to prevent a government shutdown, buying time until at least March 14. One measure to mitigate the crisis could be running down the Treasury General Account (TGA), the government’s operating account at the Fed, which is used to collect taxes, customs duties, proceeds from the sale of securities, and public debt receipts. The government previously used the TGA to meet expenses in 2023, which had a positive impact on risk assets like BTC. 

Is MicroStrategy Planning Another Bitcoin (BTC) Purchase?

MicroStrategy’s Michael Saylor hinted at more moves in the market following Donald Trump’s inauguration, posting a cryptic statement and an image of the company’s portfolio tracker. Historically, such statements are followed by new BTC acquisitions by MicroStrategy. The firm’s BTC holdings are valued at a staggering $47 billion. MicroStrategy shares have seen a substantial increase over the past six months. The firm’s strategic investment in BTC has complemented its impressive performance. MicroStrategy currently holds around 450,000 BTC. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) surged to a new all-time high Monday leading up to Donald Trump’s inauguration. However, it rapidly declined after hitting $109,350 as selling pressure drove the price lower. BTC has been bullish since last week after recovering from Monday’s intraday low of $89,397. The price recovered as buyers bought the dip, allowing it to reclaim $90,000. BTC ultimately settled at $94,492 before registering a substantial jump of 2.19% on Tuesday to move past the 20-day SMA and settle at $96,566. Bullish sentiment intensified on Wednesday as BTC crossed the 50-day SMA and $100,000 to settle at $100,050. However, it lost momentum on Thursday as sellers drove the price to an intraday low of $97,094. BTC recovered from this level to settle at $99,798, registering only a marginal decline. 

Source: TradingView

Bullish sentiment returned on Friday as BTC rose nearly 4% to reclaim $100,000 and settle at $103,732. However, momentum waned on Saturday, allowing sellers to take control. As a result, BTC registered a marginal decline and settled at $103,579. The price experienced substantial volatility on Sunday, rising to an intraday high of $106,552 before losing momentum, allowing sellers to take control. As a result, BTC dropped just over 2% to end the weekend at $101,434. BTC surged to a new all-time high on Monday as it went past $105,000 to reach $109,350. However, bulls lost momentum after reaching this level as BTC quickly plummeted to $102,408, registering an increase of nearly 1%. Sellers attempted to drive BTC below $100,000 during the ongoing session. As a result, BTC dropped to an intraday low of $100,173. However, it has recovered since and is up 0.50%, trading around $102,977. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice