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Bitcoin Dips Ahead of Trump’s Inauguration Amid Market Jitters

Bitcoin’s post-election rally has hit a snag, with the cryptocurrency falling into the red just one week before Donald Trump is set to return to office.

The leading digital asset briefly dipped below $91,000 on Monday morning before recovering slightly. As of 8:34 a.m. ET, Bitcoin was trading at $91,400.96, down approximately 3% on the day. This marks a sharp decline from its December high of over $106,000, which was fueled by optimism over the Federal Reserve’s final interest rate cut of 2024 and a Trump-driven boost to financial markets.

Market Volatility and Fed Concerns
Bitcoin’s slide below $100,000 last week highlights renewed concerns about inflation and the Federal Reserve’s plans to slow its pace of interest rate reductions. A strong jobs report released last week showed the labor market outperforming Wall Street expectations, raising questions about how aggressive the Fed might remain in its monetary policy. Investors now await the Consumer Price Index (CPI) report set for release on Wednesday.

Wider Crypto Market Decline
Other cryptocurrencies have also taken a hit as the week begins. Ethereum (ETH) fell over 5% to $3,083.01, Solana dropped nearly 6%, Dogecoin (DOGE) slipped 5%, and Cardano (ADA) plunged by almost 8%.

Trump’s Pro-Crypto Promises
Despite the current downturn, investors remain hopeful that Trump’s administration will drive greater adoption and legitimacy for digital assets. On the campaign trail, Trump pledged to establish a strategic national Bitcoin reserve, advocated for all Bitcoin mining to occur within the U.S., and lent his name to several cryptocurrency initiatives.

To further bolster the industry, Trump has named cryptocurrency proponent Paul Atkins as the incoming chair of the Securities and Exchange Commission (SEC), replacing Gary Gensler. Atkins, who leads consulting firm Patomak Global Partners, has been a long-time advocate for blockchain innovation and has chaired The Digital Chamber’s Token Alliance since 2017, which focuses on creating best practices and legal frameworks for the industry.

With Trump’s inauguration just days away, the crypto world is watching closely to see how his administration’s policies will shape the sector’s future.

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