Bitcoin, which had been experiencing a sharp upward trend and had exceeded $100,000, recently saw a significant decline, plummeting to around $92,000. Industry analysts suggest this trend could persist for several weeks.
As of 3:08 PM ET on December 23, Bitcoin was trading at $92,523.66 on Coinbase, a major U.S. cryptocurrency exchange. This was a 3.12% decline from the previous day and a steep 13% drop from its $106,637 price point just a week earlier, on December 16.
CoinDesk, a leading cryptocurrency news outlet, reported that Bitcoin’s weekly decline was the largest in about four months since August. Bitcoin had been riding high on expectations of relaxed regulations following Trump’s election victory, reaching an unprecedented peak of $108,300 on December 17. However, the Federal Reserve’s Federal Open Market Committee (FOMC) meeting and Chairman Jerome Powell’s hawkish remarks had a negative impact the following day.
The Fed signaled a more cautious approach to next year’s interest rate cuts, reducing the projected rate reductions. Powell also dismissed the idea of Bitcoin becoming a strategic asset under Trump’s second-term administration, firmly stating, “We (the Fed) cannot own Bitcoin.”
Bitcoin’s value fluctuated after falling below $100,000 on December 19. It dropped to the low $92,000 on December 20 and rebounded to $99,000 on December 22, only to retreat to the $92,000 range over the subsequent two days. Cryptocurrency investment experts anticipate this downward trend will likely continue for now.
Meanwhile, the market was rattled by allegations that North Korean hackers were conducting trades on Hyperliquid, a cryptocurrency derivatives exchange. This news triggered investors’ concerns about security risks, leading them to withdraw large sums of money from the platform.
