Bitcoin Performance Today: Down to $95k on Investor Reassessment

 

Bitcoin $BTC declines modestly on Monday (Dec. 23), showing a narrow fluctuation after last week's slump. This was because the chain reaction of hawkish Fed comments kept traders cautious.

 

Bitcoin fell below $100,000 last Thursday and has declined for five days after Fed officials indicated a decelerating pace of rate cuts in the future.

 

The Fed signaled a tighter monetary policy by saying it would cut rates only twice in 2025. This signal has caused investors to re-evaluate their holdings of speculative assets such as bitcoin, leading to bitcoin's losses.

 

Profit-taking also depresses Bitcoin. Bitcoin has fallen steadily since the prospect of a strategic stockpile of Bitcoin drove it to reach an all-time high of $108,244.9 last Tuesday, achieving its first weekly decline since Trump's victory.

 

Meanwhile, President-elect Donald Trump has appointed leaders for defense and crypto policy for his administration.

 

Trump announced on the Truth Social posts on Sunday that Michael Kratsios, formerly of Scale AI, has been nominated to lead the Office of Science and Technology Policy. Kratzios' former deputy, Lynne Parker, will chair the Presidential Council of Advisors on Science and Technology (PCAST). Former athlete and Republican congressional candidate Bo Hines will pilot the Crypto Council. Both councils will report to “crypto czar” David Sacks.

 

Most altcoins are in the same downturn as Bitcoin, as hawkish policies have caused investors to evaluate speculative assets.