Crypto:
32940
Bitcoin:
$92.625
% 3.44
BTC Dominance:
%57.5
% 0.19
Market Cap:
$3.28 T
% 1.74
Fear & Greed:
73 / 100
Bitcoin:
$ 92.625
BTC Dominance:
% 57.5
Market Cap:
$3.28 T

Bitcoin Sees First Major Weekly Decline Since Trump’s Election

Bitcoin

Bitcoin saw its first major weekly price decline after reaching an all-time high of $108,135 on December 17. The price dropped by 10% on the week ending December 22, closing at $94,645, losing around $10,500 from its starting point of $105,185.

Bitcoin’s Price Drop: The Impact of the Fed’s Decision

The drop in Bitcoin’s price came after the U.S. Federal Reserve’s decision to reduce the number of projected interest rate cuts for 2025. The Federal Open Market Committee (FOMC) trimmed its forecast from five cuts to two, creating a less favorable economic environment for risk-on assets like Bitcoin.

The Federal Reserve now expects the federal funds rate to remain near 3.9% in 2025, up from the previous forecast of 3.4%. This has made Bitcoin and similar risk assets less attractive for investors.

Bitcoin’s Recent Performance

Bitcoin’s price had risen in six of the previous seven weekly closes since Trump’s 2016 victory. However, during the week ending December 22, Bitcoin fell by approximately 10% from its all-time high of $108,135, closing at $94,645. The price dropped from $105,185 at the start of the week.

Bitcoin

 

Despite this pullback, asset management firms Bitwise and VanEck forecast that Bitcoin could surge to the range of $180,000 to $200,000 by 2025. This increase could be driven by a U.S. Bitcoin reserve strategy and further institutional adoption.

Trump’s Crypto-Friendly Policies

Donald Trump has formed the most crypto-friendly U.S. administration to date, appointing Scott Bessent as Treasury Secretary and Howard Lutnik as Commerce Secretary. Moreover, Paul Atkins is set to replace Gary Gensler as SEC Chairman, creating an environment more favorable to crypto regulation.

READ:  Why is Bitcoin falling? Does the ETF approval have an effect?

Last year, on Christmas Day, Bitcoin was trading at $43,610, as traders speculated whether the now-approved spot Bitcoin exchange-traded funds (ETFs) would be given the green light.


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