Bitcoin Experiences First Major Weekly Decline Since Trump’s Election Win
Bitcoin saw its first major weekly decline since Trump’s election win, dropping 10% to close at $94,645 following Federal Reserve interest rate adjustments. Predictions remain optimistic, with asset management firms targeting a price range of $180,000 to $200,000 by 2025, alongside potential favorable regulatory changes with a new SEC chair set to take office on January 20.
Bitcoin has experienced its first notable weekly price decline following Donald Trump’s election victory, which had previously sparked a significant rally. For the week ending December 22, Bitcoin’s price fell by 10%, closing at $94,645, down from $105,185, according to TradingView. This decline follows the Federal Reserve’s decision to reduce its expected interest rate cuts for the upcoming year, which is anticipated to affect the overall economic climate tendering risk assets like Bitcoin less attractive.
Previously, Bitcoin had shown resilience, marking increases in six of the last seven weeks post-election. The sole dip was observed the week ending November 24, where it fell by approximately 0.78%. Despite the recent pullback, asset management firms such as Bitwise and VanEck maintain optimistic projections, suggesting that Bitcoin might reach between $180,000 and $200,000 by 2025, driven by potential institutional adoption and the establishment of a US Bitcoin reserve.
The cryptocurrency sector is also anticipating a more favorable regulatory environment, especially with Paul Atkins set to replace Gary Gensler as chair of the Securities and Exchange Commission on January 20, coinciding with Trump’s inauguration. Atkins has previous experience as an SEC commissioner from 2002 to 2008. As of now, Bitcoin stands at $96,073, reflecting an approximate 11% decrease from its record high of $108,135 on December 17. Comparing this to last year’s Christmas, when Bitcoin was valued at around $43,610, the recent fluctuations highlight the volatility within the crypto market.
Bitcoin, the leading cryptocurrency, has displayed extraordinary volatility since the 2016 election of Donald Trump, which acted as a catalyst for its price surge to over six figures. The market’s dynamics are notably influenced by economic indicators such as interest rate adjustments by the Federal Reserve. With multiple interest rate cuts anticipated for the next year, Bitcoin’s attractiveness as a risk asset may diminish, influencing both retail and institutional investor sentiment. Firms such as Bitwise and VanEck remain bullish on Bitcoin’s long-term trajectory despite short-term fluctuations.
In summary, Bitcoin’s recent decline marks a significant shift in its performance since the election of Donald Trump, reflecting broader economic conditions influenced by Federal Reserve policies. While the immediate outlook may appear bearish due to the interest rate adjustments, optimism remains about Bitcoin’s long-term value, supported by potential regulatory changes and institutional investment. The cryptocurrency market continues to demonstrate high volatility and uncertainty, necessitating careful monitoring by investors.
Original Source: www.tradingview.com
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