Investing.com — continued to lose ground on Monday after hitting a high of over $108,000 nearly two weeks ago.
The world’s largest cryptocurrency was down 1.6% at $93,869.0 by 05:04 ET (10:04 GMT).
Despite the recent pullback, the cryptocurrency remains up 120% for the year, driven by optimism about the new Trump administration’s potential support for the digital currency.
Bitcoin pressured by a strong dollar, the exchange rate is nervous
According to Chris Weston, head of research at online broker Pepperstone, Bitcoin’s recent declines come as the post-election rally has lost momentum and the top cryptocurrency has settled into a trading range between $92,000 and $100,000.
A drop below $92,000 could pave the way for a further decline toward $81,000, Weston said in a note seen by the Wall Street Journal.
Bitcoin has traditionally moved inversely to (DXY), which measures the dollar’s value against key currencies like .
The recent strengthening of the dollar, fueled by anticipation of President-elect Donald Trump’s economic policies, has made traditional assets like US Treasuries and stocks more attractive compared to cryptocurrencies.
As a result, hopes for a sustained rise in crypto values have waned, with Bitcoin down nearly 4% this month. Lower liquidity and year-end profit-taking also weighed on the market, dampening the typical December “Santa rally.”
Furthermore, lowered expectations for further interest rate cuts by 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 leading altcoin falls
Most other cryptocurrencies followed Bitcoin’s decline, trading mostly flat or slightly lower, while the token saw a sharper decline.
The world’s No. 2 cryptocurrency rose 0.4% to $3,418.90, and the world’s No. 3 cryptocurrency XRP fell nearly 5% to $2,079.
Meanwhile, it fell 1.8% and Polygon lost 3.1%. down 2.5% to $0.87.
Among meme tokens, it fell 1.7%.
