Crypto Markets HODL Optimism, Despite Bitcoin’s Recent $92K Pullback

Key Points

Today, Bitcoin’s price continued dropping following the latest Fed data.
However, more recent events highlight an upcoming bright future for BTC and crypto.

Despite Bitcoin’s latest price decline amidst a weaker market, there are various developments ahead of Trump’s administration set to debut 11 days from now that keep the markets optimistic.

Bitcoin’s Price Dropped, Following Fed Minutes

Today, BTC had a descendant trajectory triggered by multiple factors, including FUD around a potential US government sale, and the latest Fed minutes revealed from the meeting in December.

BTC retreated from its recent price above $102,000 as the global markets reacted to the Federal Reserve’s December meeting minutes.

The notes revealed that the Fed officials anticipated slowing the pace of interest rate cuts in 2025, citing the following:

Concerns about persistent high inflation
Potential economic challenges including tariffs and other policy shifts

The minutes from the December 17-18 meeting revealed that recent higher-than-expected readings on inflation, and the effects of potential changes in trade and immigration policy suggest that the process could take longer than previously anticipated.

Also, yesterday’s ADP employment survey showed a slowdown in private sector hiring, which was in contrast with Tuesday’s stronger-than-expected JOLTS job openings report.

QCP Capital expects Bitcoin to consolidate between $92,000 and $95,000. At the moment of writing this article, BTC is trading above $92,000, down by over 3% today.

The latest price drops for BTC and the decline of the entire crypto market are triggered not only by the Fed minutes, and US government-related FUD, but also by geopolitical instability, inflation fears, the US fires in LA, health-related fears involving another virus in China, the US stocks recent decline, and more.

Despite all these fears, the crypto market still has reasons to hold on to hope and remain optimistic. There are 11 days left until Donald Trump’s administration begins in the US, bringing crypto-friendly policies, industry supporters, and a potential Bitcoin Reserve, as confirmed recently by Trump himself.

Crypto Markets Maintain Optimism

Apart from new investments set to flow in Bitcoin from MicroStrategy and other companies, BTC ETFs are also poised to raise billions more this year, amidst increased institutional interest.

Bitcoin and the crypto industry are seeing rising global adoption with plans to establish BTC Strategic Reserves in the US, Russia, Europe, and more.

2024 was the year during which BTC and the crypto industry eventually went mainstream and became political subjects all over the world, following Bitcoin’s impressive performance that took the coin above the important psychological level of $100,000.

Now, it seems that payments in BTC could also be on their way, at least in the US, following the latest reports. It’s been just revealed that an Oklahoma senator introduced the Bitcoin Freedom Act, enabling salaries and payments to be made in BTC.

Senator Dusty Deevers is about to bring Oklahoma’s economy into the future with this latest move. The notes address Bitcoin’s opportunities, advantages, and support shown by the newly-elect US President, Donald Trump.

Also, Circle’s CEO, Jeremy Allaire, announced recently via an X post that Circle has donated 1 million USDC to President Trump’s inaugural committee – an indicator of how far the industry has come, and the potential and power of digital dollars.