Bitcoin experienced its first significant weekly drop since Donald Trump’s election win, decreasing by 10% and closing the week at $94,645.
Bitcoin Price Changes
On the week ending Dec. 22, Bitcoin's price dropped 10% to end at $94,645, shedding about $10,500 from its starting point of $105,185. This marks the first significant decline since Trump’s electoral success that triggered a rally sending the cryptocurrency over six figures.
Fed's Decisions and Their Impact
The decline followed the Federal Open Market Committee’s decision to reduce the number of projected interest rate cuts from five to two for the coming year. This change could lead to a less favorable economic environment for risk-on assets like Bitcoin.
Bitcoin's Prospects
Despite the downtrend, asset management firms Bitwise and VanEck expect Bitcoin to soar into the $180,000-200,000 range by 2025, which could be driven by a strategic U.S. Bitcoin reserve and further institutional and corporate adoption.
Fed's decisions and changes in the U.S. political climate significantly influence Bitcoin's price, highlighting its sensitivity to economic and political conditions.
