Bitcoin Hits Two-Month Low Amid Geopolitical Strains and Rate Cut Pause
Bitcoin's price has fallen to a two-month low as geopolitical tensions rise and the Federal Reserve pauses its interest rate cuts.
The latest week in January has been a tumultuous one for cryptocurrency markets as Bitcoin and other altcoins saw a decline to new local lows. Last Friday, Bitcoin attempted to breach the resistance levels around $90,000 but faced difficulties.
BTC traded sideways around $89,000 over the weekend but faced a significant drop to a five-week low of $86,000 after President Donald Trump’s tariff threat against Canada.
However, bulls managed to rally, pushing BTC back above $90,000 mid-week. The U.S. Federal Reserve announced a pause on interest rate cuts, which unexpectedly coincided with renewed geopolitical tensions involving the U.S. President and threats toward Iran. Subsequently, Bitcoin began to fall, hitting $81,000 amid growing bearish sentiment.
Despite a slight recovery to nearly $83,000, Bitcoin remains over 7% down for the week, with similar declines noted across altcoins like ETH and XRP.
Market Data
Market Cap: $2.9Tr | 24H Vol: $214B | BTC Dominance: 57%
Additional Insights:
- Bitcoin hashrate decreased significantly due to weather disruptions in Texas.
- Fidelity is launching a new Ethereum-based stablecoin, the Fidelity Digital Dollar.
Charts
For detailed analysis, refer here.
