Crypto Market in Red, Bitcoin Price less than USD 1 Lakh, Solana declines 12 Percent

There was volatility in the crypto market after the new Donald Trump-led government took charge in the US. The price of Bitcoin, the largest cryptocurrency in terms of market value, was down by almost six percent to below one lakh dollars. Market analysts say that there is uncertainty in the market before the decision on interest rate cut in America at the end of this week.

When this report was published, the price of Bitcoin was trading at around $98,860 on the international crypto exchange Binance. The price of Ether, the second largest cryptocurrency, was at around $3,046 with a loss of about 8.70 percent. Solana, another major cryptocurrency, was down significantly. Its price was down by 12.60 percent to around $224. Other cryptocurrencies to decline included Polkadot, Cardano, Binance Coin and Litecoin. The market capitalization of crypto was down by about 4.70 percent at about $3.44 trillion.

Bitcoin’s price may trade in a range until the Federal Reserve meeting later this month. Regulatory framework will be prepared for cryptocurrencies in America. During his election campaign, Trump had hinted at creating a reserve of Bitcoin and a policy in favor of crypto. However, the Federal Reserve disagreed with the plan to create a reserve of Bitcoin. Recently Bitcoin had made a high level of more than $1,09,200. Earlier last week, the market had fallen due to no mention of crypto in Trump’s first address after becoming President.

The US Securities and Exchange Commission (SEC) has said that a task force has been formed with the aim of preparing a regulatory framework for cryptocurrencies. The previous US government had taken action against many crypto-related firms by accusing them of violating rules. These firms included Coinbase and Kraken. However, these firms had denied the allegations of violation of rules. The interest of institutional investors has increased in this segment. Software maker MicroStrategy has bought a large number of Bitcoins in the last few weeks. This company has purchased about 11,000 bitcoins for about $ 1.1 billion in the week ending January 19. This was MicroStrategy’s 11th consecutive week of large purchases of Bitcoin.