The price of Bitcoin (BTC) has fallen below $95,000 and is now at the critical decision point of $94,000. Recent statements by former President Trump regarding the Federal Reserve have exacerbated the decline in BTC prices. The loss of support levels in altcoins could lead to even larger losses, making it crucial for investors to proceed cautiously.
Trump and the Federal Reserve
In January, the identity of the new Federal Reserve Chair will be revealed, a development that Trump mentioned would occur in the previous month. Currently, two names have emerged, with Trump most recently meeting with Warsh. Following a recent statement from Trump, the other strong candidate, Hassett, has fallen behind, bringing Warsh to the forefront.
“Hassett was good on TV, and I may want to keep him as the NEC Director. We will see how the review process for Hassett’s potential appointment as the Fed Chair unfolds. Fed officials do not speak much. Hassett is good at speaking.”
These comments have led to expectations that Hassett may not become the Fed Chair.
Trump has also announced that he will apply additional tariffs to countries that do not reach an agreement concerning Greenland. BTC has now fallen to $94,404, and if the $94,000 support is lost, the price could drop further to $90,000. For the first time in a long period, investors were genuinely hopeful, and for their hopes for 2026 not to be dashed, it is critical that the $98,000 resistance is overcome.
Investor Caution Required
The uncertain political climate and potential regulatory changes have created significant volatility in the cryptocurrency market. Trump’s influence on these developments highlights the external risks that cryptocurrencies face from governmental policies.
Altcoins are especially vulnerable, as they often follow Bitcoin’s price trajectory. The potential for greater losses in altcoins due to the loss of Bitcoin support levels necessitates that investors adopt a cautious approach.
With these factors in mind, traders and investors should remain diligent and continue to monitor the situation closely. Decisions by influential figures like Trump can have immediate and impactful consequences in the crypto market.