Crypto and NFT markets took an interesting turn this week, reflecting a mix of bullish optimism and cautionary pullbacks.
Bitcoin, which had been riding a long streak of weekly gains following Donald Trump’s election win, finally posted its first notable decline. Meanwhile, new pro-crypto appointments in Trump’s incoming administration fueled excitement among traders who believe a friendlier regulatory climate could spur broader adoption. On the NFT side, booming Ethereum collections shattered volume records, even as enforcement actions from regulators raised questions about how gaming tokens might fit into the larger puzzle.
In this recap, we’ll look at Bitcoin’s drop, Trump’s evolving crypto agenda, Cathie Wood’s daring forecasts, NFT market highlights, and the overall sentiment on where regulation might take us next.
Bitcoin’s First Weekly Decline Since Trump’s Election Win
Bitcoin’s weekly close marked its first drop since Donald Trump secured the White House in November, ending a string of gains that catapulted the cryptocurrency above the six-figure mark. According to data from CoinMarketCap, the price dipped roughly 10% over the week, slipping from $106,470.61 to $98,676.10 Observers linked the fall, in part, to the Federal Reserve’s updated projection that it may hold off on as many interest rate cuts as initially expected, creating headwinds for riskier assets like Bitcoin.
Still, many analysts remain upbeat about Bitcoin’s long-term prospects. Asset managers including Bitwise and VanEck continue forecasting significant price growth into 2025 and beyond, pointing to ongoing institutional interest and the possibility of a U.S. Bitcoin reserve. Even with the pullback, Bitcoin’s historical pattern suggests volatility and price corrections can be normal phases before further rallies.
Whether or not these bullish scenarios materialize, the short-term dip reminds traders to brace for rapid market swings—especially as macroeconomic shifts and political news continue to influence sentiment in this fast-evolving landscape.
Trump’s Pro-Crypto Moves
Eyes are on Donald Trump’s forthcoming cabinet picks, many of which appear to embrace digital assets more openly than past administrations. Notably, he’s tapped officials who have expressed pro-crypto views, such as Stephen Miran for the Council of Economic Advisors, Paul Atkins for the SEC, and David Sacks as AI and crypto czar. These appointments could herald more amicable regulations for crypto-focused businesses, potentially streamlining how new tokens and exchanges operate in the United States.
Some in the crypto community expect Trump’s second stint in office to fast-track crypto innovation, particularly through proposals like a strategic Bitcoin reserve or clearer guidelines on stablecoins. Others, however, remain cautious, warning that the speed of policy changes may create as many challenges as opportunities. While a pro-crypto stance indicates a willingness to accommodate decentralized finance and blockchain startups, it may also trigger debates over consumer protections, tax rules, and how to adapt older regulatory frameworks to new financial technologies. For now, investors are watching eagerly to see how these shifts take shape.
Cathie Wood’s Bullish Predictions
Ark Invest CEO Cathie Wood once again made headlines by reiterating her long-term Bitcoin price target of $1 million by 2030.