Bitcoin experienced its first substantial weekly price drop since Donald Trump’s November election win, ending a remarkable rally that had driven the cryptocurrency to historic highs. Later on Sunday, December 22, Bitcoin declined by 10%, reflecting shifts in market sentiment and correction for the whole market.
Weekly Decline After Record Highs
Bitcoin reached an all-time high of $108,135 on Dec. 17, marking a historic achievement in its bullish streak since the start of 2009. However, by the end of the week, it had fallen by 10%, closing at $94,645, according to TradingView at the time of writing this article. This decline erased approximately $10,500 from its opening price of $105,185.
Read more: Bitcoin Surpasses $100,000 Mark Thanks to Positive SEC News and Powell’s Comments
The drop follows the Federal Reserve’s decision to reduce its future interest rate cuts from 4 times to 2 times. The Federal Open Market Committee adjusted its forecast, reducing the expected number of cuts for 2025, with the federal funds rate now projected to stabilize near 3.9%, compared to the prior estimate of 3.4%.
Promising Future of Bitcoin
Despite the recent decline, optimism remains strong among investors and analysts. Big asset management companies like Bitwise and VanEck expect Bitcoin to surge to the $180,000–$200,000 range by 2025, especially when the asset is getting more institutional adoption and the potential breakout of a strategic U.S. Bitcoin reserve under the Elected US President Donald Trump era.
Additionally, Trump’s administration is expected to create a more favorable regulatory environment for cryptocurrency. With Paul Atkins, a well-known crypto advocate, set to replace Gary Gensler as SEC chair on Jan. 20, the industry anticipates reduced regulatory friction. Atkins’ prior experience as an SEC commissioner (2002–2008) positions him as a key figure in reshaping crypto policies.
Read more: MicroStrategy Joins Nasdaq 100
Conclusion
As of Dec. 22, Bitcoin was trading at $96,073, down 11% from its record high. However, the long-term pricing for Bitcoin remains promising, especially when the traditional giants are now keeping their eyes on one of the most potential assets besides gold.
