A decline of 7% in 7 days.. Who shook the throne of the cryptocurrency Bitcoin?

Bitcoin recorded its first weekly decline since Republican President-elect Donald Trump won the presidential elections last November, amid investors’ fears of a price bubble in it. The cautious view of the policy adopted by the Federal Reserve also reduced optimism regarding the president-elect’s adoption of the cryptocurrency sector, according to what was reported by the American Bloomberg Network.

Bitcoin, the largest cryptocurrency, has declined

The largest digital assets fell by more than 7% during the seven-day period, making this the largest decline of its kind for the digital currency since last September.
The broader cryptocurrency market index, which includes smaller tokens such as Ethereum and Dogecoin that are favored by large segments of the public, also suffered a sharp decline of about 10%.
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The impact of interest movements on Bitcoin

Last Wednesday, the US Federal Reserve cut interest rates for the third time in a row, indicating a slower pace of monetary easing next year to control inflation, which pushed global stocks to decline.
The Federal Reserve’s new hawkish directives also dampened the speculative spirit that Trump unleashed on the cryptocurrency market due to his pledge of friendly regulations and his support for a national stockpile of Bitcoin.
Regarding this, Sean McNulty, trading director at Arbelos Markets, said: “The record outflow from US exchange-traded funds that invested directly in Bitcoin last week will affect prices in the near term.”

Fears of Bitcoin’s continued decline

McNulty stated: “The cryptocurrency must maintain the level of $90,000 for Bitcoin until the end of the year, but if it falls below that, this may lead to a further decline,” adding that “purposeful negative hedging” was evident in the market with the presence of large buyers in months. January, February, and March, at levels ranging between $75,000 and $80,000.
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Cryptocurrency trading

The cryptocurrency was trading at around $94,344, about $14,000 below the record high set on December 17. The currency has risen about 37% since the presidential election on November 5.
“From what is observed, choppy price movements in the near term before an upward trajectory in the first quarter of 2025 remains the ‘most likely scenario,’” said David Lawant, head of research at cryptocurrency brokerage Falcon Ex.
Lawant added, “The low liquidity environment may bring more volatility as we enter the final days of the year 2024, especially since cryptocurrencies are likely to witness the largest options expiration event in their history on December 27.”