Bitcoin’s price has shown a decline, dropping from a local HIGH above USD 102,000 to around USD 94,214. The current trading is below its 20-day EMA, indicating bearish sentiment in the market. Moreover, the RSI stands at 45, hinting at neutral market conditions, as it neither indicates oversold nor overbought status.

Analysts speculate that the crypto market might face a downturn coinciding with the inauguration of President-elect Trump owing to unfulfilled pro-crypto legislation promises. Arthur Hayes foresees a market-wide sell-off, asserting that trading predictions tied to significant political events often trigger rapid adjustments in asset valuations.

Despite potential volatility, Arthur Hayes maintains a bullish stance on Bitcoin’s value in the long RUN, attributing this to macroeconomic elements like increasing government debt. Additionally, a USD 612 billion liquidity boost from the Federal Reserve is expected to help stabilize the market, countering near-term regulatory concerns.