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Bitcoin continued its downward trend on Monday, slipping 1.6% to $93,869.0 by 10:04 GMT. This follows its peak of over $108,000 nearly two weeks ago. Despite the recent pullback, Bitcoin remains up a remarkable 120% year-to-date, fueled by optimism over potential digital currency backing under the incoming Trump administration.
Market Factors Pressuring Bitcoin
- Strong U.S. Dollar: Bitcoin’s decline coincides with the strengthening of the U.S. Dollar Index (DXY), as investors anticipate economic policies from President-elect Donald Trump. This has shifted interest toward traditional assets like U.S. Treasuries and equities, dampening the appeal of cryptocurrencies.
- Rate Jitters: Reduced expectations for further Federal Reserve rate cuts have also weighed on Bitcoin and other digital assets.
- Year-End Profit-Taking: Lower liquidity and profit-taking in December have further contributed to Bitcoin’s retreat, stalling the usual year-end “Santa rally.”
Key Support Levels
According to Chris Weston of Pepperstone, Bitcoin’s trading range has narrowed to $92,000–$100,000. A dip below $92,000 could trigger further declines toward $81,000.
Broader Cryptocurrency Market Trends
Bitcoin’s dip has pulled other cryptocurrencies down as well, though movements remain mixed:
- Ether (ETH): Up 0.4% at $3,418.90.
- XRP: Fell sharply by 5% to $2.079, leading altcoin declines.
- Solana: Down 1.8%.
- Polygon: Lost 3.1%.
- Cardano: Slid 2.5% to $0.87.
- Dogecoin: Dropped 1.7% among meme tokens.
Looking Ahead
While Bitcoin faces near-term pressures from the dollar’s strength and interest rate concerns, long-term optimism persists among crypto enthusiasts. Supportive regulatory measures or crypto-friendly policies from the incoming administration could potentially reignite market momentum in the months ahead.
