●Bitcoin sees first major weekly price decline since Trump’s election win
●Bitcoin experienced its first notable weekly price drop since Donald Trump’s election victory spurred a rally that sent the cryptocurrency skyrocketing past six figures.
●The week ending Dec. 22 saw Bitcoin fall by 10%, closing at $94,645, down from $105,185, according to TradingView. This $10,500 drop followed the Federal Reserve’s decision to reduce its projected interest rate cuts for 2025 from five to two. The federal funds rate is now expected to peak at 3.9%, higher than the previous estimate of 3.4%, creating less favorable conditions for high-risk assets like Bitcoin.
●Prior to this decline, Bitcoin had posted gains in six of the last seven weekly closes since Trump’s victory, with only a minor dip of 0.78% recorded in late November, per CoinMarketCap data.
●Despite this setback, asset management firms like Bitwise and VanEck remain bullish, projecting Bitcoin could reach $180,000–$200,000 by 2025. They cite factors such as a potential U.S. Bitcoin reserve and increased institutional adoption as drivers for this growth.
●The Trump administration is also seen as crypto-friendly, with key pro-crypto appointments. Hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnick are slated to lead Treasury and Commerce, respectively. Furthermore, crypto advocate Paul Atkins is set to replace Gary Gensler as SEC chair on Jan. 20. Atkins previously served as an SEC commissioner from 2002 to 2008.
●Currently trading at $96,330, Bitcoin is 11% below its all-time high of $108,135 reached on Dec. 17, according to TradingView. A year ago, it was valued at $43,610, as traders speculated about the approval of spot Bitcoin ETFs.