Dec 24 2024: Bitcoin extended its losing streak to a fourth day on Tuesday, retreating further as the post-election rally driven by Donald Trump’s presidential victory continued to wane amid renewed hawkishness from the Federal Reserve.
The cryptocurrency fell 2% to $94,159.4 by 00:22 ET (05:22 GMT), briefly dipping below the $93,000 mark on Monday. Bitcoin has now declined in six of the past seven sessions, marking a reversal from its earlier bullish trend.
Bitcoin Eases from Record Highs Amid Fed Rate Concerns
After surging to an all-time high of $108,244.9 in November following Trump’s election, Bitcoin experienced its first weekly decline since the election, driven by profit-taking and macroeconomic headwinds.
The Federal Reserve’s decision to lower interest rates by 25 basis points but signal only two rate cuts in 2025, instead of the previously anticipated four, has forced investors to reassess their exposure to speculative assets like Bitcoin, contributing to its recent decline.
Crypto Stocks Mirror Bitcoin’s Decline
Crypto-related stocks also felt the pressure on Monday, mirroring Bitcoin’s downturn.
- MicroStrategy (NASDAQ:MSTR): Dropped nearly 9%, further impacted by its announcement of a 1.3-million-stock sale to acquire 5,262 Bitcoins.
- Coinbase Global Inc (NASDAQ:COIN): Declined 4%.
- Riot Platforms (NASDAQ:RIOT): Ended lower.
- Marathon Digital Holdings Inc (NASDAQ:MARA): The most valuable Bitcoin miner, fell 3.6%.
Altcoins See Modest Gains Amidst Caution
Other cryptocurrencies showed resilience on Monday, with most recording slight gains despite ongoing pressure from subdued demand for speculative assets.
- Ether (ETH): Gained 3.2%, recovering from a series of losses last week, to trade at $3,431.48.
- XRP: Rose 3.1% to $2.2627.
- Solana (SOL): Increased 3.4%.
- Polygon (MATIC): Jumped 5%.
- Cardano (ADA): Advanced 2%.
- Dogecoin (DOGE): Rose 1.8%.
While altcoins managed to regain some ground, broader investor sentiment remains cautious due to the Federal Reserve’s hawkish stance.
