Bitcoin Stumbles as Fed Policy Outlook Dents Crypto’s Trump Trade
(Bloomberg) — Bitcoin and the wider cryptocurrency market have made a shaky start to the year, hurt by speculation that the Federal Reserve’s window for further interest-rate cuts is closing.
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The digital asset briefly slid below $90,000 on Monday — a drop of almost 5% compared with the start of 2025 — before a rebound that left it flat for January. Smaller tokens such as Ether are nursing losses for the month so far.
Investors are coalescing around the prospect of a prolonged Fed rate pause due to US economic resilience and the risk of inflationary tariff and immigration policies from President-elect Donald Trump, who will be sworn in next week.
Treasury yields have surged as a result, cooling some…
