Bitcoin Drops Below $95K as Trump Hopes Fade

Bitcoin (BTC) has fallen below the $95,000 mark, reflecting a weakening investor sentiment. The cryptocurrency's price peaked at an all-time high of over $109,300 on the day of Donald Trump's inauguration, but has since declined by 13% to its current level of $94,600.

Analysts attribute the decline to waning enthusiasm for the Trump administration among crypto investors. Many crypto bulls had expected the new administration to take action on regulations pertaining to digital coins and tokens, as well as to set up a strategic Bitcoin reserve. However, these expectations have not been met, leading to a loss of confidence in the market.

Macroeconomic factors have also contributed to the decline in crypto prices. Recent economic data showed that America's inflation rate rose in January, making it less likely that the U.S. Federal Reserve will cut interest rates anytime soon. This has led to a decrease in demand for riskier assets, including cryptocurrencies.

Despite the recent decline, some analysts remain optimistic about the long-term prospects of Bitcoin. The cryptocurrency has risen by 4.05% in the last 12 weeks, indicating that there is still significant demand for the asset. However, it remains to be seen whether the market will recover from the recent setback and continue its upward trend.