Bitcoin's path is rarely smooth, and its recent stumble stands in stark contrast to what investors and traders expected in the wake of President Donald Trump's inauguration.

At last check, Bitcoin (BTC) was trading at just over $101,000 on Sunday night – down 3%.

The Trump factor

Bitcoin enthusiasts were optimistic when Trump began his second term as president, anticipating a wave of pro-crypto policies. However, opening speech Lacking Any reference to digital assets, and the market took notice.

Investors who had bet on crypto-friendly management were disappointed, leading to a wave of selling.

To make matters worse, there is a pair of coins associated with Trump's branding - dubbed the "Official Trump" (Trump) and "Melania" - entered the market with great enthusiasm, only to Shatter Amazingly.

The value of the Trump token halved just days after its debut, while the Melania token fared even worse, losing 74% of its value. These flashy but short-lived projects added instability to an already tense market.

Economic crosswinds

At the same time, strong economic data from the United States played a dual role. While the strong performance of traditional markets has provided reassurance to some investors, it has also led to a shift of capital away from riskier assets such as cryptocurrencies. The interplay of these macroeconomic forces has exacerbated Bitcoin's suffering.

Flashes of hope

Despite the turmoil, Bitcoin still holds significant value, trading at over $100,000, a level that many would have considered untenable just a few years ago.

In the long term, optimism remains. BlackRock CEO Larry Fink, other cryptocurrency bulls and companies that offer exchange-traded funds (ETFs), envision a massive boom.

Where are you anticipation Bitcoin could rise to $700,000 as institutional investors deepen their foray into cryptocurrencies.

What's next?

Right now, the cryptocurrency market is facing a critical test of resilience. While Bitcoin's decline has shaken confidence, the broader community remains steadfast, seeing these fluctuations as par for the course.

At the time of writing, Bitcoin is worth approximately $101,477. see below.