Bitcoin price marks steepest weekly fall since Trump first election
Bitcoin plunges 15% to $92,000 as Fed policy shift and ETF outflows weigh on markets
Bitcoin’s price trajectory has taken a sharp turn, driven by pivotal macroeconomic shifts and evolving market conditions.
After reaching an all-time high of $108,200, Bitcoin plunged 15% to a three-week low of $92,000. This marks the steepest weekly dip since Donald Trump’s initial election win, which had previously ignited a significant price rally.
Bitcoin’s decline coincides with a shift in Federal Reserve policy expectations. The Federal Open Market Committee recently reduced its projected interest rate cuts for 2024 from five to two, signalling a less accommodative monetary stance. This has lifted the expected federal funds rate for 2025 to 3.9% from the earlier forecast of 3.4%, creating a less favourable environment for risk assets like Bitcoin.
On the regulatory front, industry experts anticipate a significant shift with the expected appointment of crypto advocate Paul Atkins as SEC chair in January 2025, coinciding with Trump’s inauguration. Atkins, who served as SEC commissioner from 2002 to 2008, is seen as a pro-crypto figure, potentially paving the way for a more favourable regulatory environment.Moreover, asset managers Bitwise and VanEck project Bitcoin’s price to soar to the $180,000–$200,000 range by 2025.
Bitcoin price outlook: RSI hints at further bearish volatility
As of Monday, Bitcoin is trading at $96,000, in between the critical $100,000 psychological resistance and the $92,000 support zone. The $92,000 level has acted as a crucial cushion since late November, preventing deeper declines in previous weeks. Despite a recovery attempt from an oversold RSI condition, the rebound stalled at $100,000, a level further reinforced by the 100 EMA on the 4-hour chart, which continues to cap bullish momentum.
BTC price dynamics (November-December 2024). Source: TradingView.
The RSI remains below 50, signalling a lack of strong upward momentum but is not yet in oversold territory, leaving room for further consolidation or volatility. Hence, $92,000 and $100,000 key levels will be critical in the coming weeks, while broader developments could shape the market’s direction heading into 2025.
Bitcoin dipped below the $100,000 mark after failing to maintain support at $103,700. Following this, Spot Bitcoin ETFs experienced record-breaking outflows of $680 million.
