Bitcoin has dipped below $100,000 following sustained postelection rises, as key market indexes reflect investor caution ahead of an upcoming Federal Reserve’s interest rate decision and some uncertainty around tariffs.
The flagship cryptocurrency is currently changing hands at $98,754.01 as of 7 a.m. E.T. on Monday, having reached an all-time high of $109,478 in the hours before Trump’s inauguration on January 20.
Why It Matters
As a key barometer for the broader strength of the crypto market, Bitcoin‘s drop in value has been mirrored by similar slips from other major digital currencies, including ethereum and XRP. Many are hailing President Donald Trump‘s interest in virtual currencies as a wholesale endorsement of cryptocurrency in general. Others say Trump simply acknowledges crypto tokens have a potential to make money and must be taken seriously, as shown by the establishment of his “working group” focused on digital assets.
Photo Illustration by Anna Barclay/Getty Images
What To Know
The Bitcoin dip below $100,000 comes ahead of a key week of economic decisions and data releases.
Following two days of meetings on Tuesday and Wednesday, the Federal Reserve Open Market Committee (FOMC) is anticipated to keep interest rates steady despite hopes of a cut from some—and recent calls to do so from President Trump.
Addressing the World Economic Forum (WEF) via video call last week, Trump said that he would “demand that interest rates drop immediately.”
“Interest rates should follow us,” the president continued. “All over, the progress that you’re seeing is happening because of our historic victory in a recent presidential election, one that has become quite well known throughout the world.”
Some are linking downward pressure on Bitcoin to the launch of China’s AI bot DeepSeek, which threatens to challenge the dominance OpenAI‘s ChatGPT. This has apparently caused panic among some investors in the American tech sector, fear which has extended to the crypto space.
“Risk-off is the theme as DeepSeek scares investors,” financial analyst Adam Kobeissi posted to X, alongside a graphic showing the plummeting price of the Solana crypto token.
The Bitcoin dip comes despite some of Trump’s campaign promises regarding crypto coming to fruition.
On Thursday, the president signed an executive order establishing a “working group” focused on digital assets, and chaired by new AI and crypto czar David Sacks. As well as providing “regulatory clarity” to the industry, this body will “evaluate the potential creation and maintenance of a national digital asset stockpile,” according to the announcement.
Speaking at Bitcoin Conference 2024 in July, Trump promised to create a “Strategic National Bitcoin stockpile” if elected, while also predicting that the currency could one day “overtake gold” in terms of market cap.
Samson Mow, a prominent Bitcoin advocate and CEO of the crypto-focused firm JAN3, predicted that the cryptocurrency would reach $1 million by 2025. He also expressed confidence in Trump delivering on his promise to create a strategic Bitcoin reserve within the year.
What People Are Saying
James Toledano, chief operating officer at digital asset platform Unity Wallet, told Forbes:” There are very real concerns over the Federal Reserve’s slower-than-anticipated interest rate cuts and this might be weighing on speculative assets like bitcoin.”
What Happens Next?
It remains unclear how significant or long-lasting Bitcoin’s current dip will be.
Bitcoin advocates, however, naturally remain bullish on the currency, forecasting that the $100,000 milestone was only a steppingstone toward even greater heights as its appeal to both investors and lawmakers continues to grow.
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