Bitcoin has experienced its first notable weekly price decline following a rally that began with Donald Trump’s election victory. The cryptocurrency’s unprecedented surge had propelled it beyond six figures, but the momentum appears to have paused for now.
According to TradingView data, Bitcoin fell by 10% during the week ending December 22, closing at $94,645. This marks a $10,500 drop from its starting price of $105,185.
The downturn coincides with the Federal Reserve’s Federal Open Market Committee (FOMC) announcement, which revised projections for 2025 interest rate cuts. Instead of the five cuts initially forecasted, the FOMC now anticipates only two, following its third consecutive reduction.
These developments suggest that the federal funds rate may stabilize around 3.9% in 2025, higher than the previously expected 3.4%. A tighter monetary policy environment poses challenges for risk-on assets like Bitcoin, which tend to thrive in looser economic conditions.
Despite the recent dip, Bitcoin has seen consistent growth in six of the past seven weeks since Trump’s victory. The only exception occurred during the week ending November 24, when the cryptocurrency posted a modest 0.78% decline to $97,280, as per CoinMarketCap data.
Industry optimism remains strong despite the setback. Leading asset management firms, including Bitwise and VanEck, project Bitcoin could reach between $180,000 and $200,000 by 2025. Such growth could be driven by increasing institutional adoption and the potential establishment of a strategic U.S. Bitcoin reserve.
The pro-crypto stance of the incoming Trump administration adds further support to these bullish forecasts.
Key appointments, including hedge fund manager Scott Bessent as Secretary of Treasury and Howard Lutnick, CEO of Cantor Fitzgerald, as Secretary of Commerce, signal a more favorable regulatory climate. Paul Atkins, a known cryptocurrency advocate and former SEC commissioner, is set to replace Gary Gensler as SEC chair on January 20—the day of Trump’s inauguration.
Currently, Bitcoin trades at $96,073, down approximately 11% from its all-time high of $108,135, which it achieved on December 17. This marks a significant contrast to Christmas Day last year, when Bitcoin traded at $43,610 amidst speculation about the approval of spot Bitcoin exchange-traded funds (ETFs).
