Bitcoin Price Dips Amid Fed's Hawkish Stance and Market Jitters

Why Is Bitcoin Price Going Down Today?

The cryptocurrency market is currently experiencing a downturn, with the price of Bitcoin retracing under $104,000. According to CoinGape's article titled "Why Bitcoin Price Is Going Down Today?" (source: coingape.com), this decline comes as analysts expect the US Federal Reserve to adopt a more hawkish stance amid persistent inflation concerns. The Fed is anticipated to announce fewer rate cuts in 2025 than previously projected, which has led traders to exercise caution.

On-chain data reveals that short-term holders have been engaging in heavy profit booking recently. This trend indicates that while some investors are capitalizing on gains above $100K levels, longer-term holders remain less active once prices surpass these thresholds. Former BitMEX CEO Arthur Hayes predicts significant turbulence around Donald Trump's inauguration day in January 2025, further contributing to market uncertainty.

Crypto Market Sees New Highs and Pullbacks

A recent report from Coinpedia Fintech News highlights how the crypto market reached new heights before witnessing minor pullbacks ("Crypto Price Today (Dec 18th, 2024): Bitcoin Price Hits New ATH at $108K | PENGU Rockets 500%!" source: coinpedia.org). Despite hitting an all-time high of over $108K, Bitcoin cooled down slightly due to strategic reserve proposals and institutional investments like MicroStrategy’s purchase of BTC worth billions.

PENGU emerged as one of the top gainers by skyrocketing over 500%, leading among other cryptocurrencies despite overall mixed signals within altcoin markets such as Ethereum dropping but Solana remaining steady.

Turbulence Predicted for Crypto Markets Around Trump Inauguration

An article from Coinspeaker discusses predictions made by Arthur Hayes regarding potential disruptions during Donald Trump's upcoming presidential term ("Arthur Hayes: Crypto Market To See 'Harrowing Dump' On Trump's Inaugural Day" source: coinspeaker.com). He suggests there will be substantial volatility across digital assets when President-elect Trump takes office next year largely due to promises related specifically to using Bitcoin strategically that may not materialize immediately. He advises readers to consider buying dips should they occur soon enough, as current circumstances surrounding economic policies globally involve too much risk otherwise. Regardless of the outcome, the situation remains uncertain until proven otherwise.

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Article Summary

Bitcoin's price decline is attributed to expectations of a hawkish US Federal Reserve stance amid inflation concerns, with short-term holders booking profits and market uncertainty surrounding Donald Trump's upcoming inauguration. Despite reaching an all-time high over $108K, Bitcoin experienced pullbacks due to strategic reserve proposals and institutional investments like MicroStrategy’s BTC purchase.