Crypto Market Takes a Big Hit: Bitcoin Drops Below $85, 000

The world of cryptocurrency took a tumble recently. Bitcoin, the most popular digital currency, dropped below $85, 000 for a short time. This isn't just a small dip. It's part of a bigger trend that's been going on for almost two months. Other tech companies also saw their values drop, which might be because some people think they are worth more than they should be. Companies that deal with cryptocurrencies also felt the heat. Coinbase, a platform where people buy and sell crypto, saw a 4. 8% drop. Robinhood, another trading platform, lost 4. 1% of its value. Even companies that mine bitcoin, like Riot Platforms, weren't spared, dropping by 4%. One company, Strategy, which focuses mainly on buying bitcoin, fell by 3. 3%. They own a lot of bitcoin, about 649, 870 coins, which were worth around $55. 7 billion at the time. Earlier, they thought bitcoin would be worth between $85, 000 and $110, 000 by the end of the year. But they had previously predicted it could reach $150, 000. Other crypto ventures linked to the Trump family also saw big drops. American Bitcoin, where Trump's sons have a stake, fell by 15. 6%. It's now nearly 47% lower than it was at the end of September. Other Trump-related crypto projects also saw their values decrease. People are pulling money out of bitcoin ETFs, which are funds that let investors bet on bitcoin without actually owning it. In November, $3. 6 billion was taken out, the most since these ETFs started trading in January 2024. Experts think several things are causing this drop. People are feeling unsure about investing in risky things, so they're putting their money into safer options like bonds and gold. Big investors are also selling their crypto, and the Federal Reserve's policies aren't helping. Plus, there's no clear regulation for crypto, which adds to the uncertainty. On the bright side, there was some good news for crypto in July. Trump signed a law that sets some rules for stablecoins, which are a type of crypto tied to things like the U. S. dollar. But a bigger bill that could create a new market structure for crypto is stuck in the Senate. This bill is important to the crypto industry, which spent a lot to support Trump and his allies.