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Bitcoin sees first major weekly decline since Trump’s election win

Bitcoin sees first major weekly decline since Trump’s election win

GrafaGrafa2024/12/23 12:30
By:Mahathir Bayena

Bitcoin (CRYPTO:BTC) has experienced its first significant weekly price drop since Donald Trump’s election victory, which sparked a rally pushing the cryptocurrency to over $100,000.

The price of Bitcoin dropped by approximately 10% during the week ending December 22, closing at $94,645 after starting at $105,185, marking a loss of around $10,500.

This decline follows the Federal Reserve's decision to reduce the number of projected interest rate cuts for the following year from five to two after its third consecutive rate cut.

As a result, the federal funds rate is expected to approach 3.9% by 2025, higher than the previously anticipated 3.4%, which could negatively impact risk-on assets like Bitcoin.

Before this week’s drop, Bitcoin had seen a steady rise, closing positively in six of the previous seven weekly cycles since Trump’s election, with only one small retracement of 0.78% during the week ending November 24.

Despite this pullback, several asset management firms remain optimistic about Bitcoin’s future.

Both Bitwise and VanEck forecast Bitcoin could reach between $180,000 and $200,000 in 2025, driven by the potential establishment of a US Bitcoin reserve and increased institutional and corporate adoption.

The Trump administration has positioned itself as one of the most crypto-friendly US governments, with notable crypto advocates like Scott Bessent and Howard Lutnik set to head key departments.

In addition, Paul Atkins is expected to replace Gary Gensler as SEC chair on January 20, which could signal a more favorable regulatory environment for the cryptocurrency industry.

Last year, on Christmas Day, Bitcoin was priced at around $43,610.

At the time of reporting, the Bitcoin (BTC) price was $94,876.55.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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