Bitcoin took a hit in Asian trading on Friday, dropping 4.5% to $97,830.3 after briefly soaring past the much-anticipated $100,000 mark. The cryptocurrency reached an all-time high of $103,719.4 on Thursday but later slid to as low as $91,000. This decline was largely driven by traders cashing in on profits while waiting for more updates on U.S. interest rates.

The surge in Bitcoin’s value earlier this week was fueled by growing optimism about favorable crypto regulations under President Donald Trump’s administration. The excitement peaked after Trump nominated several pro-crypto leaders, including a pick for the Securities and Exchange Commission (SEC) who supports digital assets. Traders were also encouraged by the announcement of a new advisor role focused on crypto and artificial intelligence, which will be filled by venture capitalist David Sacks.

Bitcoin wasn’t the only cryptocurrency making waves. Ether, the second-largest cryptocurrency, gained 1.8% to reach $3,918.19 and was up 3.5% for the week. Meanwhile, XRP saw significant momentum, climbing 1.8% and achieving a 21% weekly gain, marking its fifth consecutive week of strong performance. XRP even hit its highest level in six years due to speculation that the SEC might end its ongoing lawsuit against Ripple, the company behind XRP.

Market movements were somewhat muted on Friday as traders awaited key U.S. nonfarm payroll data, which could provide hints about future interest rate decisions. While Bitcoin’s recent price action drew attention, analysts at Citi suggested that its dominance in the crypto market might gradually decline as regulations become clearer. They believe regulatory clarity could pave the way for smaller cryptocurrencies with real-world use cases to shine, potentially outperforming Bitcoin in the long run.

Citi analysts also noted that Bitcoin is already classified as a commodity, which limits its utility compared to other cryptocurrencies. They emphasized that a coin’s long-term value will depend on its real-world usage, macroeconomic factors, and production costs. However, they joined other financial institutions in being skeptical about Bitcoin’s potential to become a global reserve asset.

While Bitcoin struggled on Friday, other cryptocurrencies showed resilience and were poised to outperform Bitcoin for the week.