Why crypto is getting ‘Trumped’ as Bitcoin price plunges to $60,000, forecasts Bloomberg analyst

Market Overview - Bitcoin has experienced a significant decline, dropping to nearly $60,000, which represents a 30% drawdown over the past month and nearly 50% from its peak [1] - The recent selloff is attributed to poor US job market data, marking the worst January since 2009, with over 100,000 job losses [2] - Major market indices such as the S&P 500, Nasdaq, and Dow Jones Industrial Average fell over 1% following the job market news [2] Analyst Insights - Bloomberg Intelligence strategist Mike McGlone suggests that the cryptocurrency market is facing a boom-and-bust cycle, exacerbated by the political landscape, particularly the implications of Trump's 2024 election campaign [1] - McGlone has predicted that Bitcoin could drop to $10,000 amid a market crash similar to the 2008 financial crisis [3] - The competition for investor attention has intensified, with the emergence of numerous altcoins, leading to a dilution of Bitcoin's unique position in the market [4] Macro Factors - The nomination of Kevin Warsh as the next Federal Reserve chair has raised concerns among crypto and stock investors due to his hawkish stance on monetary policy [6] - Overall liquidity conditions in the market have tightened, contributing to the current bearish sentiment [7] Market Cycles - The traditional four-year boom-and-bust cycle in the cryptocurrency market is currently in effect, linked to Bitcoin's halving events [8] - The current reward for confirming blocks of transactions is 3.125 Bitcoin, which is expected to decrease to approximately 1.56 Bitcoin by the next halving in 2028 [9]