Bitcoin has fallen to its lowest level in six months, highlighting a sharp decline in the cryptocurrency market. This downturn stems from a broader sell‑off in risk assets, which has been intensified by waning expectations of a U.S. interest‑rate cut by the Federal Reserve at its upcoming policy meeting. The probability of a December rate cut has slipped to roughly 40%, down from about 90% earlier in the month and over 60% earlier this week.
In early‑afternoon trading, Bitcoin, the world’s largest cryptocurrency, dropped 2.3% to $96,564, touching a previous low of $95,885.33—the lowest point since May 7. Ether, the second‑largest cryptocurrency, held steady at $3,175.22 after falling to a 10‑day low. The slide in cryptocurrencies mirrors a wider pressure on risk assets as expectations for a Fed rate cut shrink. The U.S. equity market also faced selling pressure, though it eased slightly in the afternoon ahead of the weekend.
Investors remain nervous while awaiting a raft of economic data next week, following the government’s reopening after a record 43‑day shutdown. Since its peak on October 7, crypto market capitalization has shed more than $1 trillion, a 24% decline. Analysts describe the backdrop for Bitcoin as bearish, noting concerns that the Fed may postpone a December rate cut and that AI‑related stocks appear overvalued.
Long‑term Bitcoin holders have stepped up profit‑taking, selling 815,000 BTC over the past 30 days—a record high since January 2024, according to CryptoQuant. This accelerated selling, combined with the broader drop in risk assets, reflects the current uncertainty in financial markets. As investors await the Fed’s interest‑rate decision, volatility in the cryptocurrency market is likely to persist, and the upcoming economic data will be closely watched for any clues about a potential rate cut and its impact on crypto prices.
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