Pakinomist– Bitcoin fell on Friday and was set for steep losses this week as heightened concerns over slower U.S. interest rate cuts and potential government coin sales eroded sentiment toward the crypto.
Crypto markets also largely tracked a decline in broader risk-driven markets as traders turned to safe havens like gold and the dollar amid heightened economic uncertainty.
The world’s largest cryptocurrency was also subject to profit-taking after tripling in value through 2024. Broader crypto prices also fell in line with Bitcoin.
fell 0.6% to $93,925.0 by 00:56 ET (05:56 GMT). The coin had briefly dropped as low as $92,474.1.
Bitcoin looking for weekly losses
Bitcoin traded up about 4.4% this week, its worst performance since late September.
In addition to broader risk-off sentiment, Bitcoin was also pressured by reports that the Justice Department had received court approval to sell about $6.5 billion worth of Bitcoin confiscated from the Silk Road black market.
While the DOJ sale represents increased selling pressure on Bitcoin, it also dashed hopes that President-elect Donald Trump would convert the government’s confiscated token holdings into a strategic reserve.
Trump has promised to adopt crypto-friendly regulations and has also raised the possibility of a Bitcoin strategic reserve.
But analysts expressed some doubt about how he will create the reserve, as Congress is unlikely to approve additional tax spending on public Bitcoin purchases.
Still, optimism over Trump spurred sharp gains in Bitcoin through late 2024, driving the coin to record highs above $108,000. Trump was also seen nominating a number of crypto-friendly candidates for key regulatory roles.
Crypto price today: altcoins fall as non-farm payrolls rise
Broader crypto prices tracked weakness in Bitcoin as risk appetite soured in anticipation of key data later on Friday, which is likely to weigh on interest rate expectations.
The reading comes just days after minutes from the Federal Reserve’s December meeting reiterated the bank’s outlook for fewer rate cuts in 2025, which bodes poorly for risk-driven assets.
The world’s No.2 crypto fell 2% to $3,262.51, while falling 2.3% to $2.2949.
and fell between 0.8% and 3%, while among meme tokens it lost 2.8%.
