#MarketRebound Current levels on bitcoin require caution

Bitcoin's pullback reflects expectations of a slower Federal Reserve interest rate cut in 2025, which has cooled speculative fervor over President-elect Donald Trump's push to loosen cryptocurrency regulations in the U.S.. The Republican has also backed the idea of creating a national bitcoin reserve.

According to recent developments in the US, crypto-enthusiast Senator-elect Bernie Moreno has been selected to the House Banking Committee. The digital asset industry is expecting a boom due to the prevalence of cryptocurrency supporters in the incoming Trump administration.

Meanwhile, MicroStrategy Inc. announced the purchase of an additional $561 million worth of bitcoins at an average price close to the record high last week. Thus, the company purchased BTC for the seventh consecutive week.

Bitcoin is up about 40% since Trump won the election on Nov. 5.