Dec 23 2024: Bitcoin continued to edge lower on Monday, trading within a narrow range after last week’s steep losses. The cryptocurrency faced sustained pressure from macroeconomic factors, particularly the Federal Reserve’s hawkish stance.
As of 00:41 ET (05:41 GMT), Bitcoin fell 0.7% to $95,445.4, marking its fifth decline in the past six trading days. It breached the $100,000 threshold on Thursday, driven by market adjustments to the Fed’s signals of a slower pace for future rate cuts.
Fed’s Hawkish Shift Hits Bitcoin’s Momentum
The Federal Reserve recently indicated it expects only two interest rate cuts in 2025, a downgrade from prior forecasts of four. This shift has prompted investors to reassess their exposure to speculative assets like Bitcoin, pushing prices lower.
Profit-taking also contributed to the cryptocurrency’s decline, following last week’s record high of $108,244.9. Speculation around a potential strategic Bitcoin reserve had propelled prices to unprecedented levels before a steady pullback began. This marks Bitcoin’s first weekly decline since Donald Trump’s re-election victory.
Trump Highlights Crypto Milestone, Prepares New Administration
President-elect Donald Trump acknowledged Bitcoin’s record highs during an event in Phoenix, expressing optimism about the crypto market’s growth.
In preparation for his second term, Trump has announced key appointments for defense and cryptocurrency policy. Michael Kratsios, formerly with Scale AI, will lead the Office of Science and Technology Policy. Lynne Parker, his former deputy, will head the Presidential Council of Advisers for Science and Technology (PCAST). Bo Hines, a former athlete and congressional candidate, has been tapped to lead the new Crypto Council, with all reporting to David Sacks, the administration’s “crypto czar.”
Trump’s Truth Social posts on Sunday outlined these appointments, along with other updates, ahead of his January inauguration.
Altcoins Mixed Amid Liquidity Concerns
Altcoins remained subdued, moving within tight ranges as traders reassessed the outlook for speculative assets.
Ether, the second-largest cryptocurrency, fell to $3,303.66, while XRP dropped 1.9% to $2.1896. However, some altcoins bucked the trend: Solana rose 1.9%, Polygon gained 1.2%, and Cardano edged up by 0.7%. Meme token Dogecoin also recorded a modest increase of 1.3%.
