A sharp decline in Bitcoin prices amid warnings of a potential strong correction!

Bitcoin prices have experienced a significant decline following the surge that followed Donald Trump's victory in the U.S. presidential election, with Bitcoin dropping to around $92,000 after nearing the $100,000 mark earlier in the week, resulting in the market losing about $200 billion in total market value.

This decline comes at a time when warnings of potential corrections loom, which may continue to impact cryptocurrencies. Billionaire Michael Novogratz, CEO of Galaxy Digital, predicted that Bitcoin could drop to $80,000 before rebounding again.

Novogratz noted that the market is experiencing a state of leverage saturation, making it more vulnerable to substantial corrections. He explained that the cryptocurrency community is currently under pressure from high debt levels, making a correction inevitable to restore balance in the market.

Despite these concerns, Novogratz expressed confidence in Bitcoin's ability to recover, dismissing the possibility of it falling below $80,000, especially considering that the incoming Trump administration has shown clear support for digital assets, reflecting a positive trend towards enhancing and more effectively regulating cryptocurrencies.

The American billionaire added that Bitcoin has strong fundamentals to resume its upward trajectory, predicting it would surpass the $100,000 barrier in the near term, even though reaching these levels may be accompanied by volatility and price fluctuations. However, limited supply along with increasing demand will be key factors in supporting prices in the long run, strengthening positive long-term outlooks.

In terms of trading, Bitcoin recorded a drop of 6.10% over the past 24 hours, trading near levels of $92,028.35, according to data from CoinMarketCap.

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