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    Bitcoin value dips 10% after Federal Reserve decision but predicted to reach up to $200,000 by 2025

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    Bitcoin’s value has dropped by 10%, down to $94,645 from $105,185 following the Federal Reserve’s decision to reduce interest rate cuts for the forthcoming year. Despite the fall, industry experts Bitwise and VanEck predict Bitcoin could hit between $180,000 and $200,000 by 2025 due to growing corporate interest and potential US Bitcoin reserves. Currently, Bitcoin trades at approximately $96,073, down 11% from its December 17 record high of $108,135.

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    For the first time since Donald Trump won the election, which sparked a major spike in its value, Bitcoin has experienced a significant drop in its weekly price. Over the last week leading up to December 22, Bitcoin fell by 10%, taking it down to $94,645 from its previously whopping value of $105,185, according to TradingView.

    This drop happened right after the Federal Reserve decided to cut back the number of interested rate cuts for the coming year. Instead of the expected five, they’re now only planning on two. This could result in a higher federal funds rate of around 3.9% compared to the expected 3.4%, making things not so great for risky investments like Bitcoin.

    Before this drop, Bitcoin’s price was on the up and up for six of the seven weeks following Trump’s win. The only other time it fell was in late November, but that was a small drop of just 0.78% to $97,280, according to CoinMarketCap data.

    But despite the recent drop, some big players in the finance world like Bitwise and VanEck are still expecting Bitcoin to shoot up to between $180,000 and $200,000 by 2025. They believe this could be driven by the US keeping Bitcoin reserves and more big companies deciding to get on board with it.

    The Trump administration has also stacked the deck with people who are in favor of cryptocurrency, appointing hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik to lead the Treasury and Commerce departments.

    The expectation is that with these guys in charge, the crypto environment will get friendlier. For example, crypto supporter Paul Atkins is set to replace Gary Gensler as the chair of the Securities and Exchange Commission on the same day Trump is inaugurated.

    Right now, Bitcoin is trading at around $96,073, which is down about 11% from its record high of $108,135 that it hit on December 17, TradingView data shows. Last year on Christmas Day, Bitcoin was trading at about $43,610 as people were betting on whether spot Bitcoin exchange-traded funds (ETFs) would get the go-ahead.

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