Bitcoin Falls 8% sharply on Friday, falling 8% to $93,809 as market volatility and risk aversion gripped investors.
Bitcoin, the world’s largest cryptocurrency, experienced a significant sell-off on Friday, tumbling below $93,000 before stabilizing slightly above that mark. By 8:26 a.m. ET, Bitcoin was trading at $93,809, an 8% decrease in 24 hours, according to Coin Metrics.
This sharp decline follows a week of unprecedented highs, with Bitcoin reaching over $108,000 before reversing gains. The downturn coincides with signals from the Federal Reserve that fewer interest rate cuts are expected in the upcoming year. This cautious stance unsettled equity markets, indirectly impacting cryptocurrency prices.
Bitcoin’s rally earlier this year was fueled by several factors, including the approval of spot Bitcoin ETFs and political developments like Donald Trump’s U.S. presidential election victory. Trump’s promise of pro-crypto policies significantly boosted investor confidence, pushing Bitcoin to new record levels.
However, as market uncertainty grows due to Federal Reserve signals, assets with significant 2024 gains, such as Bitcoin, are losing momentum. Other cryptocurrencies also suffered declines; Ethereum (ETH) fell 12%, and XRP dropped 10% within the same 24-hour period.
The current dip highlights the persistent volatility in crypto markets, reminding investors to approach these assets with caution during turbulent times.
