Bitcoin erased much of its recent post-election rally, falling into the red a week before Donald Trump is set to take office once again.
The leading cryptocurrency briefly plunged below $91,000 Monday morning, before recovering some ground. As of 8:34 a.m. ET, Bitcoin was down roughly 3% at $91,400.96.
That’s a significant reversal from a record high of more than $106,000 last month, fueled by expectations of the Federal Reserve’s third and final interest rate cut of 2024 and continuing to ride a Trump-driven markets boom.
With Trump’s inauguration a week away, Bitcoin has extended its decline after a series of losses, falling below $100,000 again last week. The popular digital asset has seemingly bogged down by renewed concerns around inflation and the Fed’s plans to slow its pace of rate cuts.
Last week’s jobs report showed the labor market remaining strong, with job creation smashing Wall Street expectations in December. Consumer Price Index (CPI) figures are set to be released Wednesday.
Other cryptocurrencies also took a hit to kick off the week. Ethereum’s native token, Ether, the second-largest cryptocurrency by volume, sank more than 5% to $3,083.01 apiece; Solana fell nearly 6%; Elon Musk’s preferred digital asset, Dogecoin, dropped almost 5%; and Cardano plunged nearly 8%.
Investors are hoping Trump will spur adoption and legitimization of digital assets. On the campaign trail, he called for a strategic national Bitcoin reserve, declared all Bitcoin should be mined in the U.S., and attached his name to multiple crypto projects.
The president-elect has tapped Paul Atkins, a cryptocurrency advocate, to chair the Securities and Exchange Commission following Gary Gensler’s departure — a move welcomed by the crypto industry. Atkins, who now leads the consulting firm Patomak Global Partners, has chaired The Digital Chamber’s Token Alliance since 2017, which was charged with advocating best practices and recommending legal frameworks that promote the crypto industry.
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