Cryptocurrencies

Bitcoin Stumbles as Fed Policy Outlook Dents Crypto’s Trump Trade

  • Investors adjust to the risk of a prolonged pause in rate cuts
  • Trump’s upcoming inauguration as president injects uncertainty

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.

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 broadly flat for January. Smaller tokens such as Ether are nursing losses for the month so far.