On Thursday, bitcoin's price plunged to approximately $93,000, driven by investor concerns over a potential U.S. government sell-off of bitcoin seized from the Silk Road darknet marketplace. This decline was further exacerbated by a rise in U.S. Treasury yields, which hit 4.67% on January 7. Historically, increases in Treasury yields have led to decreased interest in riskier assets like bitcoin, prompting investors to seek safer investments.

The uncertainty surrounding Donald Trump's upcoming presidency has also contributed to bitcoin's recent price stagnation, according to some experts. For example, some in the digital asset sector are questioning Trump's commitment to a pro-crypto agenda, according to Austin King, CEO of Omni Labs: “People are wondering why bitcoin’s price has stalled after achieving the $100,000 milestone. I think bitcoin’s sluggish movements right now are reflective of the market pricing in Trump’s historically volatile policy behavior.”

Despite Trump's promises to transform the U.S. into a haven for the crypto industry, skepticism still persists about his ability to carry out his campaign pledges: “It’s clear the Republican party leaned into a pro-crypto policy stance in order to accumulate votes from citizens who hold crypto assets,” King told TheStreet Crypto. “What is unclear though, is how likely Trump is to follow through on his promising, yet vague, statements about his crypto policy plans once he is in office."

“Markets will rise if Trump appears to be taking an active stance in ensuring pro-crypto policies are enacted swiftly, or they will fall if investors believe he is deprioritizing crypto now that he has already locked in the votes,” King added.