Bitcoin has been facing difficulties due to economic uncertainty, including a strong dollar and concerns about President-elect Trump's tariff plans.
These factors have led to increased volatility and a decline in Bitcoin's performance.
The strength of the dollar is a primary concern for Bitcoin, and the Federal Reserve's recent signals have contributed to this strength.
Additionally, stronger-than-expected payroll numbers suggest that the Federal Reserve may not lower interest rates in the near term, further complicating the economic landscape.
Despite these challenges, long-term structural factors supporting the growth of digital assets remain intact.
The legislative environment surrounding cryptocurrencies is also evolving, but any potential positive impacts from pro-crypto legislation may take time to materialize.
The interplay between economic indicators and legislative developments will be critical in shaping the future of cryptocurrencies in the United States.