It fell for the fourth session to $94,000 as the post-election rally faded By Investing.com

Investing.com — Bitcoin fell for a fourth straight day on Tuesday, as the rally sparked by Donald Trump’s presidential election victory lost momentum after the Federal Reserve turned hawkish last week.

It fell 2.1% to $94,350.0 by 06:55 ET (11:55 GMT). It fell below the $93,000 level on Monday.

The token fell below the key level of $100,000 last week after Federal Reserve officials signaled a slowing pace of future cuts. Bitcoin has fallen for six of the past seven days.

Bitcoin loses ground after record peak in Fed rate expectations

Bitcoin recorded its first weekly decline since Trump won the election in early November last week.

The rally pushed prices to an all-time high of $108,244.9, after which prices fell on profit-taking amid macroeconomic pressures stemming from Fed interest rate expectations.

The central bank cut interest rates by 25 basis points, but indicated only two interest rate cuts for next year, compared to previous expectations of four cuts.

This shift led investors to reevaluate their positions in speculative assets such as Bitcoin, contributing to a decline in their prices.

Cryptocurrency stocks fall depending on Bitcoin prices

Cryptocurrency-related stocks fell on Monday, tracking the downtrend in Bitcoin prices, which reached nearly the $92,000 level the previous day.

MicroStrategy Incorporated (NASDAQ:) shares fell nearly 9% Coinbase International Inc (NASDAQ:) fell 4%. Shares of Riot Platforms (NASDAQ:) also ended lower on Monday.

MicroStrategy also came under additional pressure after announcing the sale of 1.3 million shares to buy 5,262 bitcoins.

The most valuable bitcoin mining company Marathon Digital Holdings Inc (NASDAQ:) fell 3.6%.

Cryptocurrency Price Today: Most altcoins are up but remain under pressure

Other cryptocurrencies rose on Monday. Gains were limited as demand for speculative assets remained weak after a hawkish Federal Reserve rattled investor sentiment.

The world’s No. 2 cryptocurrency rose 2.2% to $3,408.93. Ether has fallen for several consecutive days since last week, but has rebounded slightly in the past two days.

The world’s No. 3 cryptocurrency rose 1.8% to $2,237.

It rose about 5% and jumped 5.5%, while adding less than 1%. Among tokens, it rose 2.2%.

Continued Bitcoin volatility may lead to increased interest in altcoins

Traders expect continued volatility in Bitcoin with a potential shift towards altcoins, as important options expirations impact market conditions in the upcoming holiday week.

“All eyes are on the massive expiration on Friday, where nearly $20 billion USD will expire across BTC and ETH options,” QCP Capital said in a broadcast early Tuesday. “This represents nearly half of the total open interest (OI) on Deribit. We believe this is quite possible especially if the spot price continues to range here and as option sellers continue to place short trades.”

Rolling over refers to traders expanding their options positions by moving them to a later expiration date, rather than allowing them to expire. This strategy helps in sustaining the trade if they remain confident in their market forecast.

High volatility can benefit options buyers by increasing the likelihood that the option will become “in the money” – potentially resulting in profits before expiration.

“While Bitcoin continues to struggle below the 100K level, we can also see altcoins starting to catch up again,” QCP noted, noting that a similar pattern emerged last month when Bitcoin traded around current levels.