Analysts Explained the Biggest Reason for the Decline in Bitcoin! When will the rise occur again?

Winning the presidential race in November Donald Trump, Bitcoin ve altcoinIt brought an increase to . As Bitcoin reaches new peaks of $108,000 in the rally initiated by Trump Ethereum It exceeded 4 thousand dollars.

However, this rally lost momentum as the new year approached and the Bitcoin price fell to 90 thousand dollars.

At this point, while it is wondered whether the declines will continue, analysts generally think that the cryptocurrency market is moving away from the Trump narrative.

Analysts say he is moving away from the Trump narrative and FEDHe states that the dollar has strengthened due to the hawkish statements coming from and is putting pressure on cryptocurrencies such as Bitcoin.

Therefore, analysts stated that they expect Bitcoin to face downward pressure in the short term.

digital asset manager Zach Pandl, head of research at Grayscale Investments. The current headwind for Bitcoin is a stronger dollar, he said in an interview with CNBC.

Pandl stated that Bitcoin is held by the strength of ‘USD’ and said that this situation is temporary and that the situation will change as Trump’s inauguration day approaches.

Pandl added that BTC’s declines in the last two days were mainly due to markets starting to realize that the Trump administration’s policies, including tariffs, would have a negative impact on BTC.

“The jobs report raised expectations that the Fed would delay interest rate cuts, thus supporting the dollar. As the dollar strengthened, it put downward pressure on the price of Bitcoin. So Bitcoin’s current problem is the strong dollar.”

Pandl added that despite macroeconomic difficulties, bullish expectations for Bitcoin continue.

Apart from Grayscale analyst Zach Pandl, Alex Thorn, head of research at crypto-focused company Galaxy Digital, also stated that the decline in Bitcoin was due to the cautious attitude of the FED and the uncertainties surrounding Trump’s economic policies.

Thorn also warned that the factors he listed could lead to short-term declines in risky assets such as Bitcoin.

JPMorgan analyst Kenneth Worthingto said the potential positive effects of pro-crypto legislation may not emerge quickly as Congress is expected to prioritize non-cryptocurrency issues in the next three months. At this point, he stated that cryptocurrency prices may not experience the expected increases in the short term.

*This is not investment advice.