PakGazette continued to lose ground on Monday after reaching a high of more than $108,000 almost two weeks ago.
The world’s largest cryptocurrency fell 1.6% to $93,869.0 at 5:04 a.m. ET (10:04 GMT).
Despite the recent pullback, the cryptocurrency is still up 120% for the year, buoyed by optimism over potential support for the digital currency by the incoming Trump administration.
Bitcoin pressured by dollar strength and rate jitters
Bitcoin’s recent declines come as post-election momentum loses momentum, with the top cryptocurrency settling in a trading range between $92,000 and $100,000, according to Chris Weston, head of research at online broker Pepperstone.
A drop below $92,000 could pave the way for further declines toward $81,000, Weston said in a note seen by the Wall Street Journal.
Traditionally, Bitcoin has moved inversely to the (DXY), which measures the value of the dollar against key currencies such as the .
The dollar’s recent strength, fueled by anticipation of President-elect Donald Trump’s economic policies, has made traditional assets such as U.S. Treasuries and stocks more attractive compared to cryptocurrencies.
As a result, hopes for a sustained cryptocurrency rally have weakened, with Bitcoin falling nearly 4% this month. Lower liquidity and year-end profit taking have also weighed on the market, cushioning the typical December “Santa rally.”
Additionally, lower expectations of further interest rate cuts from the Federal Reserve have put pressure on Bitcoin and other digital assets.
Still, some investors remain optimistic that long-term crypto-friendly policies could support the market, even in a strong dollar environment.
Crypto Price Today: XRP Leads Altcoin Drops
Most other cryptocurrencies followed Bitcoin’s decline, trading mostly flat or slightly lower, while the token saw a steeper drop.
The world’s No. 2 cryptocurrency rose 0.4% to $3,418.90, and the world’s No. 3 crypto, XRP, fell nearly 5% to $2,079.
Meanwhile, it fell 1.8% and Polígono lost 3.1%. fell 2.5% to $0.87.
Among meme tokens, it fell 1.7%.
