Bitcoin is approaching its first weekly decline since Trump’s victory

Bitcoin is headed for its first weekly decline since Donald Trump won the US election last month, as a dovish outlook for Federal Reserve policy exacerbates optimism sparked by the president-elect’s embrace of the cryptocurrency sector.
The largest digital assets fell by more than 7% during the seven-day period to 2:50 pm on Sunday in New York, the largest such decline since September. The broader cryptocurrency market gauge, which includes smaller tokens like Ether and meme-favorite Dogecoin, suffered a sharp decline of about 10 percent.
The Federal Reserve on Wednesday made a third straight interest rate cut while signaling a slowing pace of monetary easing next year to keep inflation under control, sending global stocks lower. The hard-line pivot has also dampened the speculative spirit unleashed in the cryptocurrency market by Trump’s pledge of friendly regulations and his support for a national Bitcoin stock.
The original cryptocurrency was trading at around $95,000, about $13,000 below the record level recorded on December 17. The token has risen more than 40 percent since the presidential election on November 5.
Volatile near-term price action ahead of an “upward trajectory” in the first quarter of 2025 remains “the most likely scenario,” David Lawant, head of research at crypto brokerage FalconX, wrote in a note.
“The low liquidity environment may bring more volatility as we enter the final days of the year, especially since on December 27 cryptocurrencies are likely to witness the largest options expiration event in their history,” Lawant said.