---
title: "The hottest \"Trump trade\" has started to decline!"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/223032155.md"
description: "Analysis suggests that the cautious policy outlook of the Federal Reserve has suppressed optimism in the cryptocurrency market. On December 27, the largest options expiration event in cryptocurrency history will occur, which may exacerbate price volatility"
datetime: "2024-12-23T00:26:57.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/223032155.md)
  - [en](https://longbridge.com/en/news/223032155.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/223032155.md)
---

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# The hottest "Trump trade" has started to decline!

"Trump Trade" cools off? Bitcoin experiences its first weekly decline since Trump's election.

Since Trump won the U.S. election last month, Bitcoin is heading towards its first weekly decline. As of Sunday, Bitcoin's seven-day decline exceeded 7%, marking the largest drop since September, with broader cryptocurrency indicators, including Ethereum and Dogecoin, experiencing even larger declines of about 10%.

Bitcoin is currently trading at around $95,000, down about $13,000 from its all-time high set on December 17. Since the presidential election on November 5, Bitcoin has risen over 40%.

According to a report by Bloomberg on Monday, the Federal Reserve's cautious policy outlook has dampened optimism in the cryptocurrency market. Last Wednesday, the Federal Reserve cut interest rates for the third consecutive time while signaling a slowdown in monetary easing next year to control inflation, leading to a global stock market crash.

This hawkish shift has also suppressed the cryptocurrency market, as the speculative sentiment released by Trump's promise of friendly regulatory policies and support for establishing a national Bitcoin reserve has waned.

David Lawant, head of research at cryptocurrency brokerage FalconX, noted in a report:

> Price volatility is severe in the short term, but it may still present a "bullish trend" entering the first quarter of 2025, which remains the "most likely scenario."
> 
> A low liquidity environment may bring more volatility, especially since December 27 may witness the largest options expiration event in history for cryptocurrencies

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