Bitcoin Faces Potential First Weekly Decline Since Trump’s Election Win
Bitcoin is on track for its first weekly drop since Donald Trump won the US election last month. The cautious stance from the Federal Reserve has put a damper on the excitement that followed Trump’s positive comments about the crypto industry.
In the past seven days, Bitcoin has fallen more than 7%. This is the largest decline since September. Other cryptocurrencies, like Ether and Dogecoin, have also experienced a more significant drop of about 10%.
The Federal Reserve recently announced another interest rate cut but indicated that future monetary easing would happen at a slower pace to control inflation. This news caused global stocks to plummet, impacting the crypto market as well. The positive sentiment that Trump’s regulatory support and interest in Bitcoin had sparked was dampened by this more cautious approach.
Despite the recent decline, Bitcoin is still trading at around $95,000, which is $13,000 below its all-time high. Since the election on November 5th, the cryptocurrency has seen an increase of more than 40%.
Looking ahead, experts predict that Bitcoin may experience some volatility in the short term due to low liquidity as we approach the end of the year. Additionally, there is expected to be a significant options expiry event on December 27th, which could further impact prices.
Overall, while Bitcoin is experiencing a decline this week, many analysts believe that it is still on a positive trajectory for the first quarter of 2025. So, despite the recent drop, there is still hope for a bullish outlook in the near future.
