Bitcoin Crashes Below $93,000 After Trump Rally Despite Musk’s Crypto Boost

Fresh wave of fear grips crypto market as Bitcoin and major cryptocurrencies plummet, wiping billions from total market value

  • Bitcoin Price drops below $93,000, marking a 10% decline from its recent high of $100,000
  • The crypto market correction has erased approximately $200 billion in total value
  • Michael Novogratz predicts Bitcoin could find support at $80,000 before recovering
  • Trump’s election victory signals potential favorable crypto regulation changes
  • Market analysts attribute the correction to high leverage and profit-taking

Bitcoin Retreats from $100,000 Mark Amid Market-Wide Correction

Bitcoin’s price has fallen sharply to around $90,000, retreating from its recent peak near $100,000 following Donald Trump‘s U.S. election victory. The correction has reduced the total cryptocurrency market capitalization by approximately $200 billion from its $3.2 trillion peak.

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Novogratz Warns of Further Downside

Galaxy Digital CEO Michael Novogratz has identified excessive leverage as a key risk factor in the current market. "The crypto community is levered to the gills, and so there will be a correction," he stated during a CNBC interview. Novogratz suggests $80,000 as a potential support level, corresponding to Bitcoin’s price before Trump’s electoral victory.

Trump Administration’s Crypto Stance

Despite the current market pullback, Novogratz remains optimistic about Bitcoin’s long-term prospects, citing the incoming Trump administration’s favorable stance toward digital assets. "The entire cabinet almost owns bitcoin, and are proponents of digital assets," he noted, expressing confidence that Bitcoin will eventually surpass $100,000.

Technical Analysis Points to Key Support Levels

FxPro’s chief market analyst Alex Kuptsikevich provides technical perspective on the correction: "Bitcoin fell below $93,000 on Tuesday morning, deepening its corrective pullback and falling for the fourth consecutive day… traders should pay more attention to bitcoin’s momentum around $91,800 (76.4% of the rally). Without proper support in this area, the bears’ next target could be the $87,000 area (61.8%)."

Supply Dynamics Remain Favorable

Despite short-term volatility, market fundamentals appear strong. "We’re in price discovery. There’s not a lot of supply," Novogratz emphasized, suggesting that limited Bitcoin supply could support prices once the current correction concludes.

The market continues to monitor key technical levels and institutional movements as Bitcoin navigates this significant price correction phase.

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