Don’t panic: Bitcoin’s price action is ‘business as usual’

This is a segment from the Empire newsletter. To read full editions, subscribe.

---

Given the volatility we saw yesterday, I thought it might be a good time to do a mini temp check.

We saw bitcoin briefly drop below $90,000 on Monday, and this morning we’re back up over $96,000. 

The volatility seems like it’s here to stay, perhaps until Inauguration Day. ETH, shadowing bitcoin’s movements, also took a tumble before regaining momentum. 

And then there’s top AI agent coin AI16z, which is up 21% in the past 24 hours, having bounced after undergoing its own selloff. Ah, the diversity of crypto. There’s truly nothing like it. 

Bitcoin’s sudden drop didn’t exactly worry Unity Wallet’s James Toledano. 

“The current price action may appear concerning but for those of us who have been in the space for a long time, it is simply business as usual. It doesn’t necessarily signal the end of the bull run either,” he explained. 

“The inauguration of President-elect Trump is just seven days away and could be a pivotal moment, with markets anticipating announcements of pro-crypto policies that might spark renewed buying interest. Institutional accumulation, as reflected in falling exchange reserves also supports the view that demand remains strong despite low trading volumes.”

Pairing that with what we’ve been told by Ledn’s John Glover, we very well may close out this month with a run. Glover thinks we could see bitcoin move 20-30% higher in the next few weeks, especially given that the $91,000 level seems to be a decent support level. 

I am once again asking for you to be patient, especially given that we’re only a week out from the new administration.

---

Get the news in your inbox. Explore Blockworks newsletters:

• The Breakdown: Decoding crypto and the markets. Daily.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• 0xResearch: Alpha directly in your inbox.
• Lightspeed: All things Solana.
• The Drop: Apps, games, memes and more.
• Supply Shock: Bitcoin, bitcoin, bitcoin.