Cardano (ADA) posted the biggest 24-hour loss among the top 10 largest cryptos with an 8% plunge amid fears the Donald Trump inauguration will be a “sell the news” event.
ADA’s correction was enough to erase the altcoin’s weekly gains to trade at $0.9139 as of 7:22 a.m. EST.
Bitcoin Weakness Pulls Cardano And Other Cryptos Down
The pullback in the Cardano price comes as leading crypto Bitcoin (BTC) struggles to recover back above the psychological $100K mark after fresh economic data caused the crypto to spiral.
Hovering around $93.6K, BTC’s lull has impacted the broader crypto market as well, with the digital asset sector’s collective market cap recording a more than 1% drop in the last 24 hours.
Analysts attributed the drop in crypto prices to fears that Trump’s Jan. 20 inauguration might be a “sell the news” event. In the weeks leading up to the event, traders’ risk taking picked up across financial markets. This was due to the belief that more pro-crypto and pro-business policies will be introduced by the Trump administration.
Another potential reason for the pullback in the crypto market could be the US government’s recent sale of Bitcoin that it seized from darknet marketplace Silk Road. Last year, Trump said that he would create a strategic BTC reserve using the seized assets to chip away at the nation’s huge debt pile.
The potential creation of a Bitcoin strategic reserve fueled speculation that BTC will soar to new all-time highs this year. However, the sale will likely delay the creation of such a reserve.
Bitcoin Pullback Just A Pause, QCP Capital Says
The poor performance by Bitcoin and the rest of the crypto market in the last few days could be an opportunity to buy the dip. Singapore-based QCP Capital said in a Thursday market broadcast on Telegram that BTC’s pullback “is merely a pause” that is “setting the stage for a bullish rally.”
Pseudonymous trader and analyst Rekt Capital echoed this sentiment in a Jan. 8 X post to his over 529K followers. “Bitcoin will retrace deep enough to convince you that the Bull Market is over,” the analyst said, before adding that it will then “resume its uptrend.”
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