Sudden panic triggers $200 billion worth of Bitcoin and cryptocurrency price drops

Bitcoin and cryptocurrency prices have crashed after their huge run-up due to Donald Trump’s US election victory (although Elon Musk has quietly confirmed he is a game-changer in the cryptocurrency market).

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Bitcoin price has crashed from nearly $100,000 on Monday to $90,000 per bitcoin. The crypto price correction has removed around $200 billion from the overall $3.2 trillion market.

Now, after a leak revealed that Bitcoin could be hit by a massive earthquake on Wall Street next year, traders are nervously waiting to see how low the Bitcoin price could fall after crypto billionaire Michael Novogratz warned that it could fall to $80,000 before recovering.

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“The system has enormous leverage right now,” said Novogratz, the chief executive of crypto financial services firm Galaxy Digital CNBC. “The crypto community is under pressure, so there will be a correction.”

Novogratz predicted that Bitcoin price could fall back to around $80,000 per Bitcoin, but said he does not expect it to fall below that level – as the price is trading ahead of Trump’s presidential election victory, which represents a “paradigm shift” for crypto regulation signals.

“The entire Cabinet owns almost Bitcoin and is proponents of digital assets,” Novogratz said of the new Trump administration, adding that he believes it is inevitable that Bitcoin will eventually surpass $100,000 per Bitcoin.

“Usually you hit the $100,000 mark and then you recover a little bit,” he said. “I wouldn’t be surprised if you know we’re going much higher. We are in the process of pricing. There’s not a lot of supply,” Novogratz said.

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However, other Bitcoin price and crypto market observers are also warning that Bitcoin could fall significantly lower before it recovers.

“Bitcoin fell below $93,000 on Tuesday morning, extending its corrective pullback and falling for the fourth straight day,” FxPro chief market analyst Alex Kuptsikevich said in emailed comments.

“On Monday there was another attempt to push the price above $99,000, which resulted in further selling. This is due to the geopolitical pullback, which has turned into a broader profit-taking scenario when looking at the entire rally since November 4th.” This means that traders are following Bitcoin’s momentum by $91,800 (76.4% of Rally) should pay more attention. Without proper support in this area, the bears’ next target could be the $87,000 area (61.8%).