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Bitcoin continued its downward trajectory on Tuesday, marking its fourth consecutive daily decline as the rally triggered by Donald Trump’s presidential election victory faded in the face of a more hawkish Federal Reserve.
- Bitcoin Price: Fell 2% to $94,159.4 as of 00:22 ET (05:22 GMT), dipping below the critical $93,000 level on Monday.
- Weekly Performance: Bitcoin has declined in six of the past seven days, pressured by profit-taking and macroeconomic concerns.
Rally Loses Steam After Fed’s Rate Outlook
After reaching an all-time high of $108,244.9 in early November, Bitcoin has faced mounting pressure:
- The Federal Reserve’s decision to cut rates by 25 basis points last week, coupled with signals of just two rate cuts in 2025, cooled market enthusiasm.
- Investors adjusted their positions in speculative assets like Bitcoin, contributing to the current sell-off.
This marks Bitcoin’s first weekly loss since Trump’s election victory spurred the initial rally.
Crypto Stocks Follow Bitcoin’s Decline
The slide in Bitcoin prices has impacted crypto-related stocks:
- MicroStrategy Inc. (NASDAQ:MSTR): Fell nearly 9%, compounded by the announcement of a 1.3-million-stock sale to fund the purchase of 5,262 bitcoins.
- Coinbase Global Inc. (NASDAQ:COIN): Declined 4%.
- Riot Platforms Inc. (NASDAQ:RIOT): Ended Monday lower.
- Marathon Digital Holdings Inc. (NASDAQ:MARA): Dropped 3.6%, reflecting broader pressure on Bitcoin miners.
Altcoins Edge Higher But Remain Subdued
While Bitcoin struggled, other cryptocurrencies showed modest gains on Monday:
- Ethereum (ETH): Rose 3.2% to $3,431.48, recovering slightly after consecutive losses last week.
- XRP: Increased 3.1% to $2.2627.
- Solana: Jumped 3.4%, while Polygon surged 5%.
- Cardano: Gained 2%.
- Dogecoin: Rose 1.8%, reflecting cautious optimism among meme token investors.
Despite these gains, overall demand for speculative assets remains subdued as the Federal Reserve’s hawkish outlook continues to weigh on investor sentiment.
Outlook
The crypto market is likely to remain under pressure until there’s more clarity on the Fed’s monetary policy and its implications for speculative assets. Investors are also keeping an eye on Bitcoin’s ability to hold above key psychological levels, including $92,000, to gauge the broader market’s direction.
