The price of Bitcoin (BTC) has fallen to $95,500 U.S. as analysts warn that the so called “Trump trade” is beginning to fade.
Bitcoin had rallied from the time of Donald Trump’s re-election on Nov. 5 last year through to his inauguration on Jan. 20.
The price of Bitcoin peaked at an all-time high of just over $109,300 U.S. on the day of Trump’s inauguration. Since then, the price has declined 14% to $95,500 U.S.
Analysts say that Bitcoin is sliding lower as enthusiasm for Trump’s new administration begins to erode.
Many crypto bulls say they are unimpressed by the Trump administration’s crypto policies.
Crypto bulls were counting on Trump to follow through on his campaign promise to set up a strategic Bitcoin reserve, something that hasn’t happened yet.
Many crypto advocates expected Trump to sign an executive order creating the strategic Bitcoin reserve on his first day in office.
At the same time, macroeconomic factors have begun to weigh on crypto prices.
Recent data showed that America’s inflation rate rose in January, making it less likely that the U.S. Federal Reserve will cut interest rates this year.
Investors tend to move away from riskier assets such as crypto when interest rates are elevated.
So far this year, the price of Bitcoin has risen 2.5%, underperforming the benchmark S&P 500 equity index that has risen 4% to start 2025.
