Leading cryptocurrency Bitcoin (BTC) has suffered its first major weekly decline since Donald Trump won the US presidential election.
BTC, which enjoyed a huge rally due to Trump’s influence, faced a flood of negative news last week after breaking consecutive records. Had to. The price of BTC is down about 11% after hitting a high of $108,135 on December 17.
BTC closed the week ending December 22 at $94,645, according to TradingView data. The opening price for the week in question was $105,185. The $10,500 drop caused concern in the crypto market.
The biggest weekly decline was due to the Fed’s tightening stance on Bitcoin reserves and speculation.
Although Bitcoin took a hit, hope is not lost
The Federal Reserve’s (Fed) Federal Open Market Committee signaled it would remain cautious next year, even as it cut interest rates for the third year in a row. The Fed cut the number of interest rate cuts expected for the next year to two from five. According to experts, the Fed’s interest rate could be kept closer to 3.9 percent in 2025, compared to 3.4 percent. This situation could have a negative impact on risky assets like BTC.
Bitcoin (BTC) ended six of seven weekly lows after Trump won the election. The only negative weekly close occurred in the week ending November 24. BTC fell 0.78% to $97,280 on November 24.
BTC, which closed lower for the first time since November 24, made crypto investors nervous.
Despite BTC’s recent performance, asset management companies predict that the rally will continue into 2025. According to these companies, BTC could rise to the $180,000 to $200,000 range next year. The surge in question could be backed by the US’s strategic bitcoin reserve.
The Trump administration has nominated hedge fund manager Scott Besant and Kantar Fitzgerald CEO Howard Lutnick to head the Treasury and Commerce departments. Cointelegraph noted that the new regime has the most pro-crypto executives to date.
Experts also expect crypto-friendly Paul Atkins to take over as SEC chairman on January 20. Atkins served as SEC Commissioner from 2002 to 2008.
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
