Bitcoin experienced significant volatility this week, initially dipping below $90,000 before rallying to over $105,000 as Donald Trump prepares for his upcoming presidential inauguration. The price drop earlier in the week was influenced by traders' concerns over Federal Reserve interest rate decisions. However, a subsequent rise in inflation data seemed to bolster expectations for a Fed rate cut, driving Bitcoin's comeback. Additionally, the anticipation of Trump issuing an executive order to support the crypto industry during his first week in office contributed to the surge. In parallel, Bitcoin mining difficulty reached a record high, making it more challenging to mine new coins. Moreover, the Department of Justice confirmed plans to return Bitcoins stolen from the 2016 Bitfinex hack, while SEC Chair Gary Gensler hinted at Bitcoin potentially being viewed as a commodity in the future. The week concluded with impactful ETF flows and Coinbase reintroducing Bitcoin-backed loans for users.

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