Bitcoin Price Today: Inflation Fears, Trump Tariff Concerns Drive Price Below $93k

Bitcoin's dramatic two-day plunge has rattled the crypto market, erasing nearly all of its early 2025 gains and sparking a fresh wave of investor anxiety.

Amid fears of rising inflation, surging bond yields, and potential US tariff policies under the incoming administration, Bitcoin fell to a low of $92,900 today (Wednesday), leaving traders debating its next move.

Fed Policy and Tariff Concerns

The selloff began earlier this week as strong US economic data caused fears that the Federal Reserve might maintain a hawkish stance longer than anticipated, CNBC reported.

The 10-year US Treasury yield surged, pressuring risk assets across the board. Bitcoin, which briefly traded above $102,000 on Monday, plunged nearly 5% in the daily chart. At the time of publication, the price was $94, 361, down 2% in the past day.

Among altcoins, Cardano's ADA, Solana (SOL), and Avalanche (AVAX) led losses. Cardano (ADA) currently trades at $0.921, representing an 8% decline in the past day. SOL, DOGE, and AVAX are down 4%, 5%, and 6%, respectively.

Minutes from the Federal Reserve's recent policy meeting reportedly highlighted rising concerns about inflationary pressures. Additionally, uncertainty surrounding President-elect Donald Trump's potential tariff policies has reportedly added to market jitters.

These factors have traders reevaluating expectations for 2025, with rate cuts potentially fewer than previously anticipated. Historically, rate cuts have buoyed Bitcoin prices, while rate hikes have had the opposite effect. Any signs of delayed cuts could hinder Bitcoin's upward trajectory, keeping traders on edge.

Long-Term Prospects

Bitcoin's long-term prospects remain tied to broader adoption, regulatory clarity, and technological innovation. With 2024 marking significant milestones such as spot ETF approvals and institutional adoption, investors remain cautiously optimistic about Bitcoin's role in portfolios.

Technically, BTC is facing a downward price momentum. The cryptocurrency could find support at $91,829. Currently, it trades below the 50-moving average but remains above the 200-moving average.

On the daily price chart, the Relative Strength Index is at 44, meaning the price is above the oversold zone and could drop further before the trend changes.

For now, market participants will watch for upcoming economic data and Trump's inauguration for cues. While uncertainty looms, Bitcoin's resilience in past downturns offers a glimmer of hope for traders seeking a rebound.