Investing.com– Bitcoin declined for the fourth consecutive day on Tuesday as a rally sparked by Donald Trump’s presidential election victory lost steam after the Federal Reserve became hawkish last week.

fell 2.1% to $94,350.0 at 06:55 ET (11:55 GMT). It fell below the $93,000 level on Monday.

The token fell below the key $100,000 level last week after Fed officials signaled a slower pace for future cuts. Bitcoin has declined for six of the past seven days.

Bitcoin loses steam after record peak Fed rate outlook

Bitcoin recorded its first weekly fall since Trump’s election victory in early November, last week.

The rally pushed prices to an all-time high of $108,244.9, after prices fell due to profit-taking amid macroeconomic pressures caused by the Fed’s rate hike.

The central bank lowered rates by 25 basis points but indicated only two rate cuts for the coming year, compared to previous expectations for four cuts.

This shift has led investors to re-evaluate their positions in speculative assets such as Bitcoin, which has contributed to its price decline.

Crypto stocks fall tracking Bitcoin prices

Crypto-related stocks fell on Monday following the downtrend in Bitcoin prices, which reached near the $92,000 level a day earlier.

MicroStrategy Incorporated (NASDAQ: ) fell nearly 9%, while Coinbase Global Inc (NASDAQ: ) fell 4%. Riot Platforms (NASDAQ: ) also ended lower on Monday.

MicroStrategy is also under increased pressure after announcing a 1.3-million-stock sale to buy 5,262 bitcoins.

The most valuable Bitcoin miner Marathon Digital Holdings Inc (NASDAQ: ) fell 3.6%.

Crypto prices today: most altcoins are higher but remain under pressure

Some cryptocurrencies were higher on Monday. Gains were limited as demand for speculative assets was still dampened after the hawkish Fed rattled investor sentiment.

The world no.2 crypto is 2.2% higher at $3,408.93. Ether has fallen for several days in a row since last week but has recovered slightly in the last two days.

The world’s no.3 crypto rose 1.8% to $2.237.

rose nearly 5% and jumped 5.5%, while adding less than 1%. Among meme tokens, it increased by 2.2%.

Bitcoin’s continued volatility could drive interest in altcoins

Traders expect continued volatility in Bitcoin with a potential shift to altcoins, as a significant options expiration will influence market conditions in the upcoming holiday week.

“All eyes are on the big expiry this Friday, where nearly $20B notional in BTC and ETH options will expire,” QCP Capital said in a broadcast early Tuesday. “This represents almost half of Deribit’s total open interest (OI). We believe this is possible especially if the area continues to diverge here and as option sellers continue to roll their shorts.

“Rolling” refers to traders who expand their option positions by moving them to a later expiration date, rather than allowing them to expire. This strategy will help to sustain the trade if they remain confident in their market outlook.

High volatility can benefit option buyers by increasing the likelihood of the option being “in-the-money” – potentially generating profits before expiration.

“As BTC continues to struggle below 100k, we may also see alts start to play again,” QCP said, noting that a similar pattern emerged last month when bitcoin trading at current levels.