Investing.com -- Bitcoin continued to lose ground on Monday after climbing to a high of over $108,000 nearly two weeks ago.
The world’s largest cryptocurrency fell 1.6% to $93,869.0 by 05:04 ET (10:04 GMT).
Despite the recent pullback, the cryptocurrency remains up 120% for the year, driven by optimism over potential digital currency backing from the incoming Trump administration.
Bitcoin pressured by strong dollar, rate jitters
Bitcoin’s recent declines come as the post-election boost loses momentum, with the premier cryptocurrency settling into a trading range between $92,000 and $100,000, according to Chris Weston, head of research at online broker Pepperstone.
A drop below $92,000 could pave the way for further declines toward $81,000, Weston said in a note seen by the Wall Street Journal.
Bitcoin has traditionally moved inversely to the U.S. Dollar Index (DXY), which measures the dollar’s value against key currencies like the euro.
Recent dollar strength, driven by anticipation of economic policies from President-elect Donald Trump, has made traditional assets such as U.S. Treasuries and stocks more appealing compared to cryptocurrencies.
As a result, hopes for a sustained crypto rally have weakened, with Bitcoin falling nearly 4% this month. Lower liquidity and year-end profit-taking have also weighed on the market, dampening the typical December “Santa rally.”
Furthermore, reduced expectations for further interest rate cuts by the Federal Reserve have pressured Bitcoin and other digital assets.
Still, some investors remain optimistic that long-term crypto-friendly policies could support the market, even in a strong dollar environment.
Crypto price today: XRP leading altcoin declines
Most of the other cryptocurrencies followed Bitcoin’s decline, trading mostly flat or slightly lower, while the XRP token experienced a sharper drop.
World no.2 crypto Ether was 0.4% higher at $3,418.90, and the world no.3 crypto XRP tumbled nearly 5% to $2.079.
Meanwhile, Solana fell 1.8% and Polygon lost 3.1%. Cardano slid 2.5% to $0.87.
Among meme tokens, Dogecoin dropped 1.7%.