On Friday, January 10, Bitcoin reached $91,000 on CoinMarketCap, reverting to levels seen in November. This situation raises concerns about Bitcoin potentially dropping below the symbolic threshold of $90,000, distancing itself from the $100,000 it achieved in December. The leading cryptocurrency has dragged down most altcoins, including Ether and XRP, sitting at 12% lower than its all-time high of $108,268 reached on December 17.
This decline is primarily attributed to macroeconomic uncertainties. In the minutes from its mid-December meeting published on Wednesday, January 8, the Federal Reserve (Fed) indicated a desire to pause its monetary easing policy. After cutting its key rates by 25 basis points for the third consecutive time in December, the Fed may adopt a less accommodative stance in light of rising inflation and Donald Trump's economic policies. Investors will closely monitor the Fed's announcements during its meeting on January 28 and 29.
Additionally, the rise in U.S. Treasury yields and the strengthening dollar on Wednesday could explain Bitcoin's weakness. In this environment, investors have been shedding risky assets like cryptocurrencies. On Thursday, January 9, the crypto market faced liquidations exceeding $500 million, according to Coinglass. Another disruptive factor is that the U.S. Department of Justice (DOJ) may sell over 69,000 Bitcoins (worth $6.5 billion at current prices) seized in legal cases, with rumors suggesting a sale before Donald Trump's inauguration on Monday, January 20.
