Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Bitcoin Plunges 7% in Its First Decline Since Trump’s Election—Is the Bull Run Over?

wikitree Views  

Bitcoin (BTC) has recorded its first weekly decline since Donald Trump was elected president, adding uncertainty to the market.

Bitcoin commemorative coin / Parilov-shutterstock.com
Bitcoin commemorative coin / Parilov-shutterstock.com

Bloomberg reported on Monday that Bitcoin has fallen over 7% in the past week and is trading around $94,000. This represents a drop of about $14,000 from its peak of $108,135 on December 17th, suggesting that the recent bull run has entered a correction phase.

Bloomberg attributes this downturn primarily to changes in the U.S. Federal Reserve’s monetary policy. The Fed’s message to slow the pace of monetary easing to combat inflation has reportedly dampened investor sentiment.

In particular, the Fed’s hawkish stance has dampened speculative sentiment in the crypto market and tempered expectations surrounding President-elect Trump’s crypto-friendly policies and proposals for national Bitcoin reserves.

Sean McNulty, trading director at Arbelos Markets, stressed the critical importance of Bitcoin holding the $90,000 level through year-end.

McNulty cautioned that a collapse below this level could create additional selling pressure, potentially leading to steeper price declines. Investors are hedging against further downsides as increased demand for put options (rights to sell at a predetermined price) with strike prices between $75,000 and $80,000.

However, David Lawant, head of research at FalconX, offered a more optimistic outlook. While acknowledging that low year-end liquidity could increase Bitcoin’s volatility, Lawant maintains a strong possibility of a bullish reversal in the first quarter of 2025. He highlighted the upcoming options expiry event on December 27th – the largest in crypto history – as a potential market-moving catalyst.

wikitree
content@viewusglobal.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • Honda's NSX Returns: A 1,000-Horsepower Electric Rival to Lexus LFR
  • Honda’s S7 Electric SUV: A Major Player in the Race for EV Dominance
  • Lamborghini's First EV: A 2,000-Horsepower Beast Built for Speed and Emotion
  • Ford Revives Classic Design with the 2025 Bronco Heritage Edition
  • ID.EVERY1: Volkswagen's $21K Electric Vehicle Aims to Make Green Driving Accessible
  • Toyota’s bZ3X SUV Surges with 10,000 Pre-Orders: A New Era in EVs

You May Also Like

  • 1
    Your Cooking Oil Might Be Doing More Harm Than Good—Here’s Why

    LIFESTYLE 

  • 2
    How Many Calories You Burn While You Sleep Might Surprise You

    LIFESTYLE 

  • 3
    Researchers Say This One Policy Shift Could Save Millions of Lives

    LIFESTYLE 

  • 4
    Trouble Sleeping? Your Personality Might Be the Reason Why

    LIFESTYLE 

  • 5
    This Simple Habit Could Lower Heart Failure Death Risk From 21% to 11%

    LIFESTYLE 

Popular Now

  • 1
    This One Ratio Could Be the Key to Spotting Heart Failure Early

    LIFESTYLE 

  • 2
    His Dad Went Blind From Glaucoma—He Nearly Did Too by Skipping an Eye Exam

    LIFESTYLE 

  • 3
    Experts Say: Crash Diets Can Wreck Your Body—and Your Mind

    LIFESTYLE 

  • 4
    Why You Should Stop Reboiling Water in Your Kettle

    LIFESTYLE 

  • 5
    You Found Old Yogurt in Your Fridge—Should You Toss It or Eat It?

    LIFESTYLE 

Must-Reads

  • 1
    Your Cooking Oil Might Be Doing More Harm Than Good—Here’s Why

    LIFESTYLE 

  • 2
    How Many Calories You Burn While You Sleep Might Surprise You

    LIFESTYLE 

  • 3
    Researchers Say This One Policy Shift Could Save Millions of Lives

    LIFESTYLE 

  • 4
    Trouble Sleeping? Your Personality Might Be the Reason Why

    LIFESTYLE 

  • 5
    This Simple Habit Could Lower Heart Failure Death Risk From 21% to 11%

    LIFESTYLE 

Popular Now

  • 1
    This One Ratio Could Be the Key to Spotting Heart Failure Early

    LIFESTYLE 

  • 2
    His Dad Went Blind From Glaucoma—He Nearly Did Too by Skipping an Eye Exam

    LIFESTYLE 

  • 3
    Experts Say: Crash Diets Can Wreck Your Body—and Your Mind

    LIFESTYLE 

  • 4
    Why You Should Stop Reboiling Water in Your Kettle

    LIFESTYLE 

  • 5
    You Found Old Yogurt in Your Fridge—Should You Toss It or Eat It?

    LIFESTYLE 

Share it on...