Bitcoin falls below $92,000 as crypto's Trump boost goes backwards

Bitcoin falls below $92,000 as crypto's Trump boost goes backwards

Bitcoin Slips Below $91K Amid Pre-Inauguration Market Jitters

Bitcoin’s post-election rally has faltered, with the leading cryptocurrency briefly dipping below $91,000 on Monday morning before stabilizing. As of 8:34 a.m. ET, Bitcoin was trading at $91,400.96, down 3% for the day.

This marks a sharp reversal from Bitcoin’s record high of over $106,000 last month. The rally had been fueled by expectations of the Federal Reserve's final interest rate cut of 2024 and optimism surrounding the market boom tied to Donald Trump’s election victory.

As Trump’s inauguration approaches, Bitcoin’s decline has deepened, weighed down by inflation concerns and uncertainty over the Fed’s plans to slow its pace of rate cuts.

Broader Market Impact

Other major cryptocurrencies faced a similar downward trend. Ethereum (ETH) fell over 5% to $3,083.01, while Solana dropped nearly 6%. Dogecoin, a favorite of Elon Musk, declined by 5%, and Cardano saw an 8% dip.

Last week’s stronger-than-expected jobs report, signaling a robust labor market, added to investor uncertainty. All eyes are now on Wednesday’s upcoming Consumer Price Index (CPI) release, which could further shape the macroeconomic outlook.

Trump’s Pro-Crypto Agenda

Despite the downturn, crypto investors remain optimistic about Trump’s potential impact on the digital asset market. On the campaign trail, Trump advocated for a national Bitcoin reserve, encouraged U.S.-based Bitcoin mining, and expressed support for crypto innovation.

Trump’s pick to lead the Securities and Exchange Commission, Paul Atkins, has been warmly received by the crypto community. A long-time cryptocurrency advocate, Atkins has chaired the Token Alliance since 2017, promoting legal frameworks to foster crypto industry growth.

With Trump’s inauguration just days away, the crypto market is bracing for potential policy shifts that could bring increased adoption and legitimacy to digital assets.