Bitcoin has surpassed the worst.

The leading cryptocurrency Bitcoin (BTC) has experienced a significant weekly decline for the first time since Donald Trump won the US presidential elections.

After a huge rally driven by Trump, BTC suffered from negative news last week after breaking consecutive records. BTC lost about 11% of its value after reaching its all-time high of $108,135 on December 17.

According to TradingView data, BTC closed the week ending on December 22 at $94,645. The starting value of that week was $105,185. The $10,500 drop caused concern in the crypto market.

Behind the biggest weekly decline were the hawkish stance of the Fed and speculation about Bitcoin reserves.

Bitcoin may have taken a hit, but hopes have not diminished

The Federal Reserve's (Fed) Federal Open Market Committee signaled caution for next year despite making a third consecutive interest rate cut. The Fed reduced the projected number of interest rate cuts for next year from five to two. According to experts, the Fed's interest rates could be kept around 3.9% in 2025, contrary to the expected 3.4%. This situation could have a negative impact on risky assets like BTC.

Bitcoin (BTC) concluded six out of the seven weeks following Trump's election victory with an uptrend. The only negative weekly close occurred in the week ending on November 24th. BTC declined to $97,280 with a 0.78% drop on November 24th.

BTC, which closed weekly in a declining direction for the first time since November 24, caused concern among crypto investors.

Despite the recent performance of BTC, asset management companies predict that the rally will continue in 2025. According to these companies, BTC could rise to a range of $180,000 to $200,000 next year. This rise could be supported by the US strategic Bitcoin reserve.

The Trump administration has selected hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik to lead the Treasury and Commerce departments. Cointelegraph noted that the new government has the most crypto-friendly executives to date.

Experts also expect crypto-friendly Paul Atkins to take office as SEC Chairman on January 20. Atkins served as an SEC commissioner from 2002 to 2008.

This article does not contain investment advice or recommendation. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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