Bitcoin Price Today: Inflation Fears, Trump Tariff Concerns Drive Price Below $93k
The selloff could have been triggered by strong US economic data and concerns about tariff policies under President-elect Donald Trump.
Altcoins also suffered losses, with Cardano (ADA), Solana (SOL), and Avalanche (AVAX) leading declines.
Bitcoin's dramatic two-day plunge has rattled the crypto market, erasing nearly all of its early 2025 gains and sparking a fresh wave of investor anxiety.
Amid fears of rising inflation, surging bond yields, and potential US tariff policies under the incoming administration, Bitcoin fell to a low of $92,900 today (Wednesday), leaving traders debating its next move.
Fed Policy and Tariff Concerns
The selloff began earlier this week as strong US economic data caused fears that the Federal Reserve might maintain a hawkish stance longer than anticipated, CNBC reported.
The 10-year US Treasury yield surged, pressuring risk assets across the board. Bitcoin, which briefly traded above $102,000 on Monday, plunged nearly 5% in the daily chart. At the time of publication, the price was $94, 361, down 2% in the past day.
Among altcoins, Cardano's ADA, Solana (SOL), and Avalanche (AVAX) led losses. Cardano (ADA) currently trades at $0.921, representing an 8% decline in the past day. SOL, DOGE, and AVAX are down 4%, 5%, and 6%, respectively.
Minutes from the Federal Reserve's recent policy meeting reportedly highlighted rising concerns about inflationary pressures.
Additionally, uncertainty surrounding President-elect Donald Trump's potential tariff policies has reportedly added to market jitters.
These factors have traders reevaluating expectations for 2025, with rate cuts potentially fewer than previously anticipated.
Historically, rate cuts have buoyed Bitcoin prices, while rate hikes have had the opposite effect. Any signs of delayed cuts could hinder Bitcoin's upward trajectory, keeping traders on edge.
Long-Term Prospects
Bitcoin's long-term prospects remain tied to broader adoption, regulatory clarity, and technological innovation.
With 2024 marking significant milestones such as spot ETF approvals and institutional adoption, investors remain cautiously optimistic about Bitcoin's role in portfolios.
Technically, BTC is facing a downward price momentum. The cryptocurrency could find support at $91,829. Currently, it trades below the 50-moving average but remains above the 200-moving average.
On the daily price chart, the Relative Strength Index is at 44, meaning the price is above the oversold zone and could drop further before the trend changes.
For now, market participants will watch for upcoming economic data and Trump's inauguration for cues. While uncertainty looms, Bitcoin's resilience in past downturns offers a glimmer of hope for traders seeking a rebound.
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Fresh Appointments Spark a Crypto “Space Race” in the U.S.: TRM Labs Exec
Recent political developments in the United States signal a major shift toward fostering a crypto friendly environment.
Ari Redbord, head of legal and government affairs at TRM Labs, likened the current enthusiasm to a “space race” for dominance in the digital asset industry during a January 6 interview on CNBC’s Squawk Box.
U.S. Positions Itself for Crypto Leadership
“There’s this excitement and cadence of almost a space race,” Redbord said, emphasizing the nation’s potential to either catch up to or surpass global competitors in digital asset adoption and innovation.
He attributed this momentum to key pro-crypto appointments under Donald Trump’s administration, which he believes could reshape federal policy.
Among the most notable appointments are Scott Bessent as Treasury Secretary, Paul Atkins as chair of the Securities and Exchange Commission, and David Sacks, a venture capitalist, who has been named the White House’s first “crypto czar.”
“The people are the policy,” Redbord noted, highlighting the alignment of these appointees with digital asset innovation and artificial intelligence advancements.
Beyond Bitcoin: Expanding Use Cases
While Bitcoin remains a focal point, Redbord stated that the digital asset landscape extends far beyond the leading cryptocurrency. “Over the past few months, we’ve seen fintechs like Stripe and Cash App use stablecoins at scale for payments,” he explained, citing a broader shift toward practical applications like cross-border transactions and remittances.
He highlighted the evolving perception of Bitcoin, which has traditionally been viewed as a store of value. Now, however, it is increasingly being leveraged for real-world use cases, including payments and financial inclusion. This trend, Redbord suggested, is indicative of a maturing market that could spur further adoption.
When asked about Bitcoin’s price trajectory in the near future, Redbord refrained from offering a specific number. However, he predicted that it would climb “significantly higher,” driven by factors such as strategic Bitcoin reserves in the U.S. and potentially other nations.
Industry analysts echo Redbord’s optimism. On January 7, crypto trader Daan Crypto Trades remarked that Bitcoin’s current rally is merely the beginning of its price discovery phase, a process where supply and demand dynamics determine the asset’s market price.
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