Bitcoin Decline: Causes and Outlook

🟨On December 18, Bitcoin experienced a decline, dropping to $98,800 before recovering to $100,911. The negative trend extended to other top-10 cryptocurrencies by market capitalization. The downturn was triggered by Federal Reserve Chair Jerome Powell’s statement that establishing a U.S. BTC reserve would require legislative changes.

🟨The reserve proposal, introduced by Donald Trump as a measure to address national debt, had the potential to boost the market. However, regulatory skepticism spurred bearish sentiment. Despite the Fed’s rate cut, investors remain cautious due to concerns about a potential slowdown in the pace of further adjustments.

🟨Experts largely agree that Bitcoin’s decline is temporary, with a recovery to new highs possible by the end of the year.