While optimism about the long-term positive impact Trump's policies could have for crypto remains high, its movements have been and may continue to be dictated by macroeconomic trends.
"From November through January, the market was very enthusiastic about pricing in a crypto-friendly U.S. administration," said Joel Kruger, market strategist at LMAX Group. "Now it's a question of waiting for that next catalyst. We know that all of this is in place, and the market is in a bit of a sell-the-fact consolidation sell as it kind of waits."
The $90,000 level marks the bottom of the narrow range bitcoin has been trading in since the end of November. Analysts have warned that if bitcoin were to meaningfully break below the level, it could see a deeper pullback toward $80,000.