(Bloomberg) — Bitcoin briefly fell nearly 7% a day after a historic rise above $100,000 prompted some traders to hedge for a pullback.

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The digital asset fell as low as $92,144 on Friday before settling at $97,325 at 9:05 a.m. in Singapore. Volatility also hit the broader crypto market, while pausing a rally fueled by President-elect Donald Trump’s embrace of the sector.

Demand has increased for bearish bets such as put options, which grant the right to sell at a predetermined price within a set period of time. Some of the most notable activity included puts with strike prices of $95,000 and $100,000, according to Amberdata. Demand for puts in the $75,000 to $70,000 range also increased.

“While we feel we still have room for improvement, investors are expected to take some profits,” said Josh Gilbert, market analyst at eToro. “If we look back at previous cycles, it is not uncommon for the Bitcoin price to decline by 20% to 40% during bull markets.”

Bitcoin, the largest digital asset, broke through the $100,000 price mark on Thursday amid optimism that Trump’s choice of a digital assets proponent as the next head of the U.S. Securities and Exchange Commission will push crypto further into the mainstream.

Trump has vowed to reverse the Biden administration’s crackdown on digital assets and make the US the global home of cryptocurrencies. The Republican even supported the idea of ​​a strategic national Bitcoin reserve, a controversial idea that former US Treasury Secretary Lawrence Summers called “crazy.”

White House Czar

Late Thursday in the US, Trump posted on Truth Social that David O. Sacks will be the White House czar for artificial intelligence and the cryptocurrency industry. “He will work on a legal framework so that the crypto industry gets the clarity it demands and can thrive in the United States,” Trump said.

The president-elect’s support for virtual currencies underpins sentiment supported by $32 billion in net inflows of U.S. dollars into Bitcoin exchange-traded funds this year. At the same time, the token’s 45% rise since Election Day on November 5 raises questions about whether the rally needs a breather.

“This spike in volatility over the last 24 hours has the hallmarks of a classic blow-off top,” said Tony Sycamore, market analyst at IG Australia Pty. “While we do not see this as the end of the Bitcoin bull run, it does suggest that we are entering a period of consolidation in the coming days or weeks.”

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