Bitcoin Price Drops 6%: A Post-Inauguration Crash

Bitcoin price has taken a sharp downturn, falling as low as $98,500 on Monday, marking its lowest point in 12 days.

Bitcoin's price dropped sharply on Monday, reaching a low of $98,500 and marking its lowest point in 12 days. This unexpected retracement follows a period of bullish euphoria surrounding Donald Trump's inauguration, which briefly propelled Bitcoin to new all-time highs. However, after hitting $109,000 on January 20, Bitcoin swiftly retraced, igniting speculation about the causes behind this market correction.

Bitcoin's price action has been erratic, dipping by 6% in just 24 hours to settle at $98,522, as seen in the chart below. After reaching an all-time high of $109,000 on January 20 during Trump's inauguration, Bitcoin failed to sustain its momentum, and traders were left disappointed when the anticipated breakout above $110,000 never materialized.

While Bitcoin consolidated at $105,000 for much of the following week, the opening of the US markets on Monday triggered the latest downtrend. The price fell sharply, as a combination of market sentiment and corporate investor movements led to widespread sell-offs.

The significant market shift in Bitcoin prices can be traced back to corporate investors' actions following Trump's inauguration. On-chain data reveals that whales, or large Bitcoin holders, cut their exposure by $58 billion shortly after the inauguration. This move came in response to growing concerns about market volatility, particularly after AI sector valuations became a hot topic.

In particular, China's launch of the Deepseek large language model, which disrupted