Bitcoin, the world’s largest cryptocurrency by market value, fell 1.59% to $93,684 at 4:21 p.m. ET on Sunday, but rebounded to $95,050 by 7:29 a.m. WAT on Monday. This volatility follows a six‑month low on Friday, triggered by a broad sell‑off in risk assets as hopes faded that the Federal Reserve would cut U.S. interest rates at its upcoming policy meeting. The probability of a December rate cut has slipped to about 40%, down from 90% earlier this month and 60% last week.
The decline in U.S. equities eased slightly ahead of the weekend, yet investors remain cautious while awaiting a wave of economic data next week after the government’s record 43‑day shutdown. In recent days, the crypto market has been pressured by diminishing expectations of a Fed rate cut, with several policymakers signaling a preference to hold off on easing. Since its peak on October 7, crypto market capitalization has dropped by more than $1 trillion, or 24%.
Analysts note that Bitcoin’s backdrop remains bearish. Investors worry the Federal Reserve may not cut rates in December and that AI‑related stocks have become overvalued. Long‑term Bitcoin holders have accelerated profit‑taking, selling 815,000 BTC over the past 30 days—a record high since January 2024, according to CryptoQuant. This trend indicates growing risk aversion and a reduced demand for cryptocurrencies.
The fall in Bitcoin’s price carries significant implications for the broader crypto market, which has already seen a substantial decline in recent months. As the Fed’s policy meeting approaches, investors will watch closely for any signs of a rate cut. A cut could boost demand for risk assets, including cryptocurrencies, while a decision to maintain current rates could trigger further declines. With the crypto market remaining highly volatile, investors must monitor market trends and economic indicators to make informed decisions.
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