Bitcoin Price Today Drops to $95K Amid Fed’s Hawkish Policy Impact

Bitcoin traded in a tight range on Monday, recovering slightly after significant losses were recorded the previous week. Cryptocurrency market players have been very cautious following macroeconomic pressure resulting from hawkish remarks by the Federal Reserve.

Bitcoin fell 0.7% to $95,445.4 as of 00:41 ET (05:41 GMT). The cryptocurrency fell below the $100,000 threshold on Thursday after Federal Reserve officials signaled a slower pace for future interest rate cuts. It was the fifth straight decline for Bitcoin over the past six trading sessions.

The Fed’s Hawkish Shift

The Federal Reserve has, of course, taken a more hawkish stance than anticipated: only two interest rate cuts expected for the coming year against four previously.

Such an attitude has led to reassessing speculative assets, like Bitcoin, which in turn has greatly contributed to Bitcoin’s price decline.

The crypto market’s reaction highlights how sensitive digital assets are to changes in monetary policy. The possibility of higher interest rates makes riskier investments less attractive, forcing investors to rethink their portfolios.

Record Highs and Profit-Taking

Bitcoin reached an all-time high of $108,244.9 on Tuesday before the recent downturn, driven by optimism over a potential strategic Bitcoin reserve.

However, profit-taking took over, which added downward pressure on prices. Last week’s drop marked Bitcoin’s first weekly decline since Donald Trump’s election victory.

Trump’s Acknowledgment of Bitcoin’s Record Peak

Incoming U.S. President Donald Trump recognized Bitcoin’s recent record peak in a speech in Phoenix. He gave kudos to the crypto market for achieving the milestone, a testament to increasing digital currencies’ influence over financial and political discussions.

Key Nominations for Crypto Policy

In his preparations for the new administration, President-elect Trump made public key nominations that will help in shaping the future of crypto policy.

Among the announced nominations are Michael Kratsios who previously worked with Scale AI and is known for his prominence in Trump’s first term.

He is nominated to head the Office of Science and Technology Policy. Kratsios has played a major role in the federal downsizing initiatives that have been spearheaded by Elon Musk.

Lynne Parker, Kratsios’ former deputy, will run the Presidential Council of Advisers for Science and Technology, or PCAST. Former athlete and congressional candidate from the Republican Party, Bo Hines, will also be running the Crypto Council.

The councils will both be answerable to David Sacks, newly appointed as “crypto czar,” and splitting time between the White House and Silicon Valley.

Announcements via Trump’s Social Media

On Sunday, Trump highlighted these key appointments on his Truth Social platform. These announcements signal the administration’s focus on integrating cryptocurrency policies into the broader framework of science and technology governance.

The appointments are expected to influence the regulatory landscape for digital assets in the United States.
Altcoin Market Performance

The larger crypto market was mute on Monday, with altcoins largely ranging within a narrowed range. Liquidity anxiety and hawkishness on the part of the Fed continued to keep investors out of mood.

Ethereum (Ether): The cryptocurrency ranked at second went down to 3,303.66 dollars.
Ripple (XRP): XRP decreased to 2.1896 dollars or 1.9 percent.
Some minor altcoins made positive movements for the day:
Solana: Gained 1.9 percent
Polygon: Made a 1.2 percent
Cardano edged up 0.7 percent
Meme tokens remain strong

Among meme tokens, Dogecoin did the most by increasing 1.3%. This comes despite a cautionary feeling in the markets.

Investor Sentiment

The cryptocurrency market’s recent movements highlight the ongoing uncertainty among investors. The Federal Reserve’s hawkish shift has introduced new challenges, prompting a reassessment of speculative investments like Bitcoin and altcoins.

As the market continues to digest these developments, the focus will remain on macroeconomic indicators and policy announcements that could shape future trends.