Bitcoin Dips Below $90,000 as Fed Rate Cut Doubts Grow

The price of Bitcoin fell to a two-month low Monday, as markets adjusted to the prospect of tighter monetary policy from the Federal Reserve.

The Bitcoin price fell as low as $89,800 Monday, slipping below $90,000 for the first time since mid-November. And it’s been nearly a month since Bitcoin set an all-time high of $108,000, although the asset traded hands above $100,000 last week.

While market players continue to speculate on shifts in crypto regulation ahead of President-elect Donald Trump’s inauguration on January 20, macro factors have been driving Bitcoin’s performance, Coinbase’s Head of Institutional Research David Duong told Decrypt.

“Given the recent employment data, concerns that the Fed may not deliver any cuts in 2025 are putting pressure on assets across the board,” he said. “Though if that decision is a product of a stronger economy, that may not last, in our view.”