The cryptocurrency market has experienced a significant decline, with Bitcoin leading the way. Bitcoin's price dropped from an all-time high to below $95,000 in just over 24 hours, wiping out approximately $500 billion from the market.
This decline was triggered by comments from Federal Reserve Chair Jerome Powell regarding inflation and interest rates. The Fed's announcement to reduce the number of planned interest rate cuts in 2025 has caused shockwaves in the market, resulting in double-digit losses for almost all cryptocurrencies.
Bitcoin's recent price movements have been extremely volatile, with the asset dipping below $96,000 and reaching an intraday low of $92,072. This decline marks BTC's first weekly drop since Donald Trump's election victory. Some analysts remain optimistic about Bitcoin's long-term prospects, predicting it could reach $1 million by 2030. However, the immediate outlook remains uncertain.
Ethereum has also faced a series of bearish pressures, slipping below $3,500 after reaching an intraday high of $4,106. The recent decline can be attributed to a combination of market sentiment and profit-taking behavior. The outlook for Ethereum remains mixed, with some analysts predicting a rebound while others cautioning about the current environment of uncertainty.
Several cryptocurrency firms, including Coinbase and Kraken, have made substantial donations to Donald Trump's inauguration committee. These donations have sparked discussions about the intersection of politics and cryptocurrency, highlighting the growing importance of regulatory considerations in shaping the future of digital assets.
The actions of these firms may signal a strategic approach to fostering relationships with key political figures, potentially impacting the regulatory environment surrounding cryptocurrencies.