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📂 Category: Cryptocurrency News,News
✅ Main takeaway:
Key takeaways
- Bitcoin fell below $81,000 early Friday, its lowest level since April, with the cryptocurrency’s decline putting it on track to record a fourth straight week of declines.
- Uncertainty over the AI bubble and Federal Reserve interest rate policy have contributed to recent volatility in US stocks, along with riskier assets like cryptocurrencies.
Cryptocurrencies are selling off amid increasing uncertainty.
The price of Bitcoin (BTCUSD) extended its recent decline on Friday, hitting a seven-month low below $81,000. It recently traded at around $83,300, leaving the world’s largest cryptocurrency on track to record its fourth straight week of declines as investors reassess their appetite for risk amid broader volatility in financial markets. Bitcoin has lost about a third of its value since hitting a record high of about $125,000 on October 6.
Prices of altcoins such as Ethereum (ETHUSD) and Solana (SOLUSD) fell alongside Bitcoin on Friday, as did exchange-traded funds that track cryptocurrencies. Shares of Strategy (MSTR), the largest bitcoin holder, and cryptocurrency mining company Mara Holdings (MARA) also fell.
Bitcoin has seen only two positive days since November 10, when it traded at around $106,000. The cryptocurrency fell in the weeks that followed, as stocks also fell amid concerns about an AI bubble inflating the stock market.
Why is this important to investors?
When markets are booming and the economy is performing well, investors may have a greater appetite for speculative and relatively volatile assets like cryptocurrencies. However, they may decline in favor of safer assets, such as Treasuries or gold, during times of heightened uncertainty.
Thursday’s jobs report — September data that was delayed due to the government shutdown — failed to provide clarity on the future path of interest rates that could have slowed or reversed Bitcoin’s recent decline. The report showed that more jobs were added than expected, while the unemployment rate also rose when it was expected to remain roughly constant.
Analysts from Bitonics said this combination of strong hiring and high unemployment could fan the flames of arguments for and against a Fed rate cut at its meeting next month, highlighting the uncertainty weighing on Bitcoin’s price.
⚡ What do you think?
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