Bitcoin Price Today: Why Has the Cryptocurrency Fallen? What We Know So Far
The price of Bitcoin fell today, January 13, down to $92,567.84. Early last week, the price topped $100,000 per bitcoin.
The fall comes after the cryptocurrency experienced a meteoric rise, fueled partly by the reelection of Donald Trump, who takes a pro-crypto stance and vowed to make the United States “the crypto capital of the planet.” He backed the creation of a “strategic bitcoin reserve” earlier this year.
How Much Has Bitcoin Fallen?
Bitcoin briefly dropped below $90,000 on Monday, January 13. To start the week, the cryptocurrency fell by 2 percent to $92,567.84, according to Chin Metrics.
It had fallen as low as $89,259 and is down 9 percent in the past week.
Stock image of a novely Bitcoin token on a U.S. Dollar. The price of Bitcoin has fallen today, January 13.
Anna Barclay/Getty Images
Why Has Bitcoin’s Price Dropped?
The cryptocurrency market is known for being volatile and subject to change.
The market has struggled following its postelection gains, and now the bitcoin price has fallen as traders reevaluate the 2025 outlook for Federal Reserve interest rate cuts, according to Forbes.
A string of positive economic updates means the Federal Reserve is less likely to cut interest rates.
On January 10, the U.S. Bureau of Labor Statistics reported that there had been a 256,000 increase in nonfarm payrolls, which surpassed the majority of forecasts in a survey from Bloomberg.
There was an additional drop in the unemployment rate to 4.1 percent, and the average hourly earnings rose by 0.3 percent in December. According to reports, this means traders do not foresee a rate cut happening until September, according to Cointelegraph and data from CME.
This prospect of prolonged higher interest rates has negatively impacted risk assets like cryptocurrencies.
Additionally, ongoing legal proceedings involving major cryptocurrencies, like XRP and its parent company Ripple, contribute to market uncertainty, affecting investor sentiment across the crypto market.
Will Bitcoin Bounce Back?
It is unclear whether Bitcoin will bounce back, and the crypto market has historically been subject to change.
Some experts have predicted further falls. Investor Arthur Hayes has predicted that the bitcoin price and the crypto market will crash late in March.
In the weeks after the election, J.D. Seraphine, CEO of crypto-based AI validation platform Raiinmaker, told Newsweek that “Trump’s victory has certainly accelerated price movement” for Bitcoin, maintaining that there was “a great deal of hype surrounding Trump coming into office and creating regulatory clarity for cryptocurrency in the U.S.”
Additionally, Trump’s pick of blockchain advocate Paul Atkins to lead the Securities and Exchange Commission means that traders anticipate a lighter regulatory environment for digital currencies.
Which Other Cryptocurrencies Have Fallen?
- Broader Crypto Market: Dropped more than 5 percent, as measured by the CoinDesk 20 index.
- Ether: Lost 7 percent on Monday.
- Shares of Coinbase: Fell 4 percent.
- Shares of MicroStrategy: Declined 3 percent.
- Mara Holdings: Dropped 4 percent.
- Core Scientific: Retreated by 2 percent.
- Dogecoin: Down 2.86 percent.
What’s Next
Though Bitcoin’s price grew by 120 percent in 2024, it is down 3 percent less than two weeks into the new year.
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