Bitcoin Hits Six-Month Low Amid Market Uncertainty and ETF Outflows
Bitcoin plunged below $95,000 on Friday, marking its first dip to this level since May. The world’s leading cryptocurrency reached a six-month low of $94,491, amidst a wider tech sell-off and increasing concerns over Federal Reserve policy. Currently, Bitcoin is down nearly 9% for the week and has fallen more than 25% from its early October peak of approximately $126,000.
The downturn was influenced by a combination of factors. These include nearly $900 million in outflows from Bitcoin exchange-traded funds, diminished expectations for Federal Reserve rate cuts, and the conclusion of an extended U.S. government shutdown that had been fostering market uncertainty. Market pricing for a December Fed rate cut has dropped from around 90% earlier this month to roughly 40%, as Fed officials hint at a potential delay in easing due to ongoing inflation worries.
Compared to gold’s 55% rise and the Nasdaq’s 21% increase, the cryptocurrency’s modest 5.5% year-to-date gain now seems lackluster. This has led some institutional investors to shift capital from Bitcoin to less volatile assets. Analysts caution that if Bitcoin slips below $93,000, it could face additional downward pressure toward the $88,000 support level.
Source: CNBC