Bitcoin (BTC), the world’s largest cryptocurrency, has settled into a sideways trading pattern following November’s extraordinary post-election rally that saw it nearly touch $100,000 for the first time ever.
The BTC/USD pair rallied as much as 50% after pro-crypto candidate Donald Trump swept to victory in the US general election.
Serving as a major price catalyst, spot-bitcoin exchange-traded funds tallied multi-billion-dollar inflows in the weeks following the result.
However, bitcoin has since calmed down, while still clocking 2.4% of week-on-week gains as of Tuesday morning.
ETF inflows remain net positive, with more than $300 million clocked over each of the previous two days, but this is significantly below the $1 billion-plus inflows seen immediately following the election.
At the time of writing, the BTC/USD pair was swapping for around $95,300.
Bitcoin remains in the week-on-week green – Source: tradingview.com
Although bitcoin has lost some steam, there are some potentially game-changing catalysts ahead as the Trump administration takes office.
In a Monday research piece, Grayscale analysts wrote: “Although crypto is a global phenomenon, Grayscale Research sees the recent US election results as a potential turning point for the digital assets industry.
“The next president and Congress will likely take up comprehensive crypto legislation and help shape agency oversight through the appointment and confirmation of key regulators.
“These decisions could affect many aspects of blockchain adoption and development in the United States, including asset tokenization, stablecoin usage, and integration of decentralized finance (DeFi) applications with traditional systems.”