Bitcoin falls as Bessent moves markets
New US Treasury appointment triggers domino effect on cryptocurrencies and safe assets.
On Monday, the price of bitcoin experienced a significant drop of 4.99%, closing at USD 93,010.01, following the nomination of Scott Bessent as the new US Treasury Secretary by President-elect Donald Trump. The choice of Bessent, known for his restrictive fiscal approach, affects the perception of bitcoin and other safe assets. This occurs in a context marked by geopolitical uncertainty and fear of a possible conflict in Europe.
BTC price is currently above the 25-, 50-, and 200-day exponential moving averages (EMAs), suggesting the short- and medium-term trend remains bullish / TradingView
A new secretary with a conservative approach
Bessent, who is winning the race for the Treasury, is considered a “fiscal hawk” who prefers a reduction in government spending and more measured tariffs. This is in contrast to the recent surge in bitcoin, which had been behaving similarly to safe assets like the dollar and gold since Trump's victory, amid global geopolitical tensions and concerns about a potential crisis.
“We are seeing an increasing bias towards the sell side as we approach the $100,000 mark,” commented David Lawant, head of research at cryptocurrency broker FalconX. Lawant added that this situation suggests a possible consolidation around this level, before an eventual sustained advance.
Bitcoin's resistance
Since November 5, bitcoin has risen strongly, driven by the president-elect's support for cryptocurrencies, including his promise to create a national reserve in Bitcoin. However, despite this boost, BTC failed to break through the $100,000 mark last week, finding resistance at this crucial level.
BTC price is currently above the 25-, 50-, and 200-day exponential moving averages (EMA), suggesting that the short- and medium-term trend remains bullish. However, trading volume has declined over the past two weeks, raising concerns about a possible correction. Additionally, the relative strength index (RSI) stands at 65.77, indicating symptoms of losing momentum. In case of a correction, support would be found at the 25-day EMA, around $87,300.
Bessent's appointment not only impacts Bitcoin, but also the global financial and cryptocurrency landscape. As the market adjusts to this new reality, investors will need to remain alert for possible changes in fiscal policy that could influence the volatility of digital assets.
Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice. Invest with caution.