Bitcoin falls below $85,000 as the post-election rally fizzles

Bitcoin was one of the big winners of the US election but it’s now given back a big portion of that gain, falling 22% from the January record high of $109K in what’s looking more and more like a double-top.

The relentless shilling and scamming in the meme coin market is undermining crypto at the moment. Trump’s ‘official’ coin peaked at $74 just before inauguration and it’s since sank to $12.80 including a 4% decline in the past day. There have been a host of other coin launches and rug pulls that have rattled the market.

At the same time, there is something of a ‘risk off’ mood in all markets that seen some of the highest flying assets beaten up, including shares of PLTR, TSLA and meme stocks.

What’s worrisome is that bitcoin is often a forerunner of broader equity sentiment. The S&P 500 is now negative on the day after rallying nearly 1% at the peak. Adding to the angst is that Nvidia will report after the bell with options pricing in a +/- 10% move on the results.

As for bitcoin, there isn’t much support here now until $80K.

This article was written by Adam Button at www.forexlive.com.