Bitcoin's Trump-Fueled Rally Hits Reverse

Bitcoin, the leading cryptocurrency, took a nosedive below $92, 000. This slide happens just days before Donald Trump's upcoming presidency. The coin had surged to a record high of over $106, 000 last month, buoyed by hopes of the Fed's final 2024 interest rate cut and Trump's influence on markets. But as his inauguration nears, Bitcoin has been losing ground. Investors are jittery about inflation and the Federal Reserve's slowdown on rate cuts. Last week, the U. S. jobs report showed the labor market's strength, exceeding Wall Street's expectations. This week, the Consumer Price Index (CPI) figures are due. Other cryptocurrencies like Ethereum, Solana, Dogecoin, and Cardano also started the week with significant drops. Trump's promises to boost digital assets have given investors some hope. He advocated for a national Bitcoin reserve and for all Bitcoin to be mined in the U. S. His pick for the SEC chair, Paul Atkins, is also a crypto supporter. Atkins has been pushing for best practices and legal frameworks to aid the crypto industry. Bitcoin's ups and downs highlight the unpredictable nature of cryptocurrencies. While Trump's stance is encouraging for crypto advocates, the market's reaction shows that investor sentiment can shift quickly based on various factors.