The value of bitcoin fell today, January 13, to $92,567. 84. At the beginning of last week, the price surpassed $100,000 compared to bitcoin.
The fall comes after the cryptocurrency experienced a meteoric rise, fueled partly by the reelection of Donald Trump, who takes a pro-crypto stance and vowed to make the United States “the crypto capital of the planet.” He backed the creation of a “strategic bitcoin reserve” earlier this year.
Bitcoin fell below $90,000 on Monday, January 13. To start the week, the cryptocurrency fell 2% to $92,567. 84, according to Chin Metrics.
It fell to $89,259 and is down 9% for the week.
The cryptocurrency market will be volatile and subject to change.
The market has struggled following its postelection gains, and now the bitcoin price has fallen as traders reevaluate the 2025 outlook for Federal Reserve interest rate cuts, according to Forbes.
A string of positive economic updates means the Federal Reserve is less likely to cut interest rates.
On January 10, the U.S. Bureau of Labor Statistics reported that there had been a 256,000 increase in nonfarm payrolls, which surpassed the majority of forecasts in a survey from Bloomberg.
The unemployment rate fell further to 4. 1 percent and the average hourly wage rose to 0. 3 percent in December. This reportedly means investors expect a rate cut through September, according to data from Cointelegraph and CME.
This prospect of prolonged interest rate increases has negatively impacted assets such as cryptocurrencies.
Additionally, ongoing legal proceedings involving primary cryptocurrencies, such as XRP and its parent company Ripple, are contributing to market uncertainty, affecting investor sentiment in the cryptocurrency market.
It is unclear whether Bitcoin will recover, and the cryptocurrency market has been subject to change.
Some experts expect additional declines. Investor Arthur Hayes expects the value of Bitcoin and the cryptocurrency market to plummet by the end of March.
In the weeks after the election, J. D. Seraphine, CEO of cryptocurrency-based AI validation platform Raiinmaker, told Newsweek that “Trump’s victory has actually accelerated the movement of value” of Bitcoin, and said there is “a lot of hype surrounding Trump’s rise to power. ” “and create regulatory clarity for cryptocurrencies in the United States.
Additionally, Trump’s selection of blockchain advocate Paul Atkins to head the Securities and Exchange Commission means investors expect a lighter regulatory environment for virtual currencies.
Though Bitcoin’s price grew by 120 percent in 2024, it is down 3 percent less than two weeks into the new year.
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Marni Rose McFall is a Newsweek journalist based in London, United Kingdom. It focuses on American politics, social issues, and popular culture. He has extensively covered fashion, culture, art and music. Marni joined Newsweek in 2024 from Frasers Group and has previously written for The Sun, Cosmopolitan, Schon, The Fall and Voir Fashion. He graduated from the University of Edinburgh. You can contact Marni by emailing m. mcfall@newsweek. com.