Bitcoin traded below $96,000 on Friday for the first time in more than six months, as a sell-off in risky assets accelerated amid a reduced likelihood of a December rate cut by the US Federal Reserve.
Bitcoin traded below $96,000 on Friday for the first time in more than six months, as a sell-off in risky assets accelerated amid a reduced likelihood of a December rate cut by the US Federal Reserve.
Bitcoin's last fall was 2.8% to $96,009, while it had previously fallen to $95,885.33, which is the lowest level since May 7, Reuters writes .
The largest cryptocurrency by capitalization recorded its third consecutive weekly decline and fell by almost 24% compared to the high of early October.
The short-lived rally in U.S. stocks that began the week on relief from the end of the shutdown has faded. As key economic reports are delayed, traders are reassessing whether the Federal Reserve (Fed) has grounds to cut rates anytime soon, adding pressure to growth assets such as cryptocurrency and technology stocks.
Markets are now pricing in a rate cut in December at about 50%, down from about 90% earlier this month and just over 60% earlier this week.
US spot Bitcoin ETFs recorded a capital outflow of $869.9 million on Thursday. This is the second largest volume of withdrawals from the funds since their launch.
Data from SoSoValue showed that Grayscale's Bitcoin Mini Trust accounted for the largest share of outflows — $318.2 million. BlackRock's IBIT recorded an outflow of $256.6 million, while Fidelity's FBTC lost $119.9 million.
Additional withdrawals were recorded in Grayscale's GBTC, as well as funds from Ark and 21Shares, Bitwise, VanEck, Invesco, Valkyrie, and Franklin Templeton.
The world's number two cryptocurrency, Ether, fell more than 8% to $3,139.95 and is down more than 12% this week. BNB fell 4.8% and is also down about 8% this week, while XRP is down 7.7%.
Solana and Cardano lost over 9% each, while among meme tokens, Dogecoin and $TRUMP fell by 8.6% and 4.3%, respectively.
