Crypto Week Ahead: Bitcoin Loses Steam After Setting New ATH, All Eyes On Trump’s Inauguration

Crypto Week Ahead: Over the past seven days, Bitcoin (BTC) price achieved a high of $107,858.93.

BTC dominance, at the time of writing, stood at 57.29 percent.

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Bitcoin (BTC), after managing to chart an all-new ATH of $107k last week, has taken a hit over the weekend, dipping down to the $92,000 range, before recovering again. Weak inflation figures and US Fed Chair Jerome Powell’s strong stance against crypto is believed to be driving this recent dip. However, US President-elect Donald Trump has been announcing more names for cabinet positions, including those for a dedicated “Crypto Council.” It remains to be seen if these announcements lend to some headwind for token prices. It’s safe to speculate that BTC prices might see some gains before Trump assumes office. 

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. 

This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their research before taking any calls. 

Crypto Prices Over The Past Week

Last Monday (December 16), the overall crypto market cap stood at $3.69 trillion. BTC price stood at around $99,500. ETH price stood at around $3,900.

A week later, the overall market cap rose to $3.69 trillion.

DeFi's total volume stands at $10.53 billion, at 7.15 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $136.47 billion, at 92.69 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at ‘Neutral’ with 54 points (out of 100).

BTC dominance, at the time of writing, stood at 57.29 percent.

Over the past seven days, Bitcoin achieved a high of $107,858.93 (on December 17) and a low of $92,422.86 (December 20).

Ethereum, on the other hand, saw a high of $4,085.81 (December 17) and a low of $3,117.31 (December 20).

Crypto Events To Note

Bitcoin has recorded its first notable weekly decline since the post-election surge following Donald Trump’s victory. The digital asset, which previously soared past six figures, saw a 10% drop during the week ending December 22.

Closing at $94,645, Bitcoin shed approximately $10,500 from its opening value of $105,185, based on TradingView data.

This downturn coincides with a shift in monetary policy signals from the Federal Reserve. The Federal Open Market Committee reduced its forecast for interest rate cuts in 2024, lowering expectations from five to two after implementing its third consecutive rate reduction.

Additionally, Japanese investment giant Metaplanet has marked a significant milestone with its largest Bitcoin acquisition to date, securing nearly 620 BTC as the cryptocurrency trades below the $100,000 mark.

In a December 23 announcement, the firm revealed its purchase of 619.7 Bitcoin, valued at just under $60 million, with the cryptocurrency priced around $96,000 per unit at the time of the transaction.

This purchase represents a dramatic leap for Metaplanet, nearly quadrupling its previous record acquisition of 159.7 BTC on October 28, as per data from Bitbo. The company has been actively investing in Bitcoin since May, showcasing its growing confidence in the digital asset's long-term potential.

Lastly, US President-elect Donald Trump has announced Bo Hines as the executive director for a new digital assets advisory body under his incoming administration.

Hines, a former college football athlete and 2022 Republican congressional candidate, will take on the role of Executive Director for the Presidential Council of Advisers for Digital Assets, also known as the "Crypto Council."

Trump made the announcement on December 22 via his Truth Social platform, emphasising the council's focus on digital assets. The initiative will be overseen by David Sacks, who was previously named as the administration's lead for cryptocurrency and artificial intelligence.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, "Bitcoin saw its first Price Discovery Corrections of this bull run cycle giving investors an accumulation opportunity for the next leg of the rally. Triggered by weak inflation forecasts and Fed Chair Jerome Powell's hawkish stance on Bitcoin reserves, BTC dipped to $92,100 over the weekend before rebounding to $97,000. BTC is currently in its cooling-off period, preparing for bulls to regain momentum. In the week ahead, BTC will likely trade range-bound as investors await a catalyst for the next upward move.”

Thangapandi Durai, CEO and Founder, Koinpark, said, “The cryptocurrency market is noticing significant developments, with Bitcoin maintaining its dominance as a leading digital asset. Institutional inflows and growing trading volumes highlight sustained interest, while technical patterns such as the golden cross and positive MACD indicate continued bullish sentiment. However, the RSI nearing overbought levels suggests the possibility of short-term corrections, calling for a balanced approach.”

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.