BTC’s wild rally after Trump’s election win has hit a wall, crashing from almost USD 100k to USD 90k in a matter of days, Forbes reports. The crypto market is now USD 200 bn lighter from the initial USD 3.2 tn, leaving traders sweating and wallets shrinking.

So, what’s the deal? Bn’aire crypto guru Michael Novogratz says the market’s stacked with leverage, too much borrowing, not enough caution. He also added that “the crypto community is levered to the gills,” warning that BTC could tumble further to USD 80k before finding its feet again. With Trump’s pro-crypto cabinet looming, Novogratz believes it’s only a matter of time before BTC bounces back to break the USD 100k barrier.

To add fuel to the fire, a leaked report suggests a major Wall Street shake up could hit the market next year in the form of additional trading crypto ETFs. This is a likely scenario given the SEC previously shifting its stance on crypto regulation, and the potential appointment of a more crypto-friendly SEC chair under a Trump administration. Specifics remain under wraps for now, but traders are on standby, unsure of how the market will react to another surprise.

What’s next for BTC? For now, all eyes are on how low the cryptocurrency might dip before clawing its way back. Novogratz argues that BTC’s limited supply could help BTC regain momentum once the market settles, hinting that scarcity will ultimately support its recovery, even if the current correction feels painful.

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