Bitcoin retreated from its early-week peak of over $102,000, reacting to the Federal Reserve’s December meeting minutes, which hinted at slower rate cuts in 2025 due to persistent inflation and potential economic challenges under the new Trump administration.
The Fed’s decision to cut rates by 25 basis points in December faced internal debate, with the next meeting on January 29 expected to maintain rates at 4.25%-4.50%. Rising U.S. Treasury yields, hitting 4.7%, added to market volatility, while U.S. stocks saw mixed performance before Thursday’s market closure for former President Jimmy Carter’s National Day of Mourning.
On the macroeconomic front, all eyes are on the upcoming Federal Reserve meeting in January, where key monetary policy decisions will be made. According to the CME FedWatch Tool, traders in the Fed funds futures market are anticipating a rate pause at this session.
Crypto markets remain under pressure from macroeconomic concerns, with analysts at QCP Capital warning of Bitcoin testing the $90,000 support if it falls below $92,000.
Political developments also weigh on sentiment. Omni Network CEO Austin King highlighted potential boosts for crypto if pro-crypto policies from the new administration materialize.
Bitcoin currently trades around $92,020, down 2.4% over the past 24 hours, as investors monitor economic and political shifts.
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