The post Bitcoin Declines as Dollar Strength and Economic Policy Shifts Impact Markets appeared on BitcoinEthereumNews.com.

TLDR Bitcoin dropped below $97,000 after briefly touching $102,000, marking its worst weekly performance Trump’s potential tariff plans and economic emergency declaration are creating market uncertainty Strong dollar and robust employment data suggest Fed may maintain higher interest rates Pro-crypto legislation likely delayed as Congress prioritizes other issues Market experts maintain positive long-term outlook despite short-term challenges The cryptocurrency market is experiencing turbulence as Bitcoin retreats from recent highs, influenced by multiple factors including Donald Trump’s proposed economic policies and a strengthening U.S. dollar. The leading cryptocurrency, which had gained over 45% following the November presidential election, has shown signs of weakness in recent trading sessions. Bitcoin briefly touched $102,000 on Monday, according to CoinGecko data, before experiencing a sharp decline that pushed prices below $97,000. The downward movement continued throughout the week, marking one of Bitcoin’s weakest weekly performances in recent months. Bitcoin Price on CoinGecko The retreat comes as Trump considers declaring a national economic emergency to implement widespread tariffs, according to CNN reports. While no final decision has been made, the mere possibility has introduced uncertainty into financial markets, affecting various asset classes including cryptocurrencies. Zach Pandl, head of research at Grayscale Investments, pointed to dollar strength as a key factor in Bitcoin’s recent performance. “Bitcoin’s problem at the moment is the strong dollar,” Pandl told CNBC, noting that recent Federal Reserve communications have contributed to the currency’s robust position. The dollar’s strength has been further supported by December’s employment data, which exceeded expectations. This strong jobs report has led investors to recalibrate their expectations for interest rate cuts, with many now believing the Federal Reserve will maintain current rates longer than previously anticipated. According to the CME FedWatch Tool, market participants now see a 97% probability that the Fed will keep rates unchanged during its upcoming…

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Filed under: News - @ January 13, 2025 1:29 pm