Bitcoin reportedly declined for a fourth day on Friday (Nov. 14), dropping as low as $94,491.22 early in the day.
Week to date, the cryptocurrency was down nearly 9%, CNBC reported Friday.
The report attributed Bitcoin’s decline in part to investors selling cryptocurrency in response to a pullback in Big Tech stocks, noting that many of the investors in those stocks also invest in Bitcoin.
Tech stocks have been slipping this week amid concerns about companies’ spending on artificial intelligence (AI) initiatives, according to the report.
The price of Bitcoin hit a record $125,000 in October but, just days later, Bitcoin saw “the largest liquidation event in crypto history,” in the words of data tracker Coinglass. That downturn was prompted by a surprise tariff announcement by the White House.
Bitcoin continued to struggle to gain momentum in November. On Monday (Nov. 10), the price of Bitcoin briefly rose above $107,000 before sliding back below $105,000.
Coindesk reported on the current decline Friday, saying that the price had dipped to its lowest level since May and that this week’s 9% drop marked the cryptocurrency’s worst performance in eight months.
Analysts attributed the downturn to the effects of the government shutdown that started Oct. 1 and ended Thursday (Nov. 13). They pointed to the government’s suspension of the release of inflation and jobs data, which led to a lack of clarity on the direction of monetary policy, according to the report.
The Wall Street Journal reported Friday that Bitcoin has fallen 25% since the peak it reached in October.
The WSJ report pointed to investors’ concerns over lowered expectations for an interest rate cut in December by the Federal Reserve, institutional and individual investors liquidating their positions, and early Bitcoin holders cashing out at the highest rate since January 2024.
Reuters reported Friday that not only Bitcoin but all risky assets have been pressured recently by diminishing expectations that the Fed will cut rates in December. Markets now price in a 40% chance of a rate cut at that time, down from about 90% earlier this month and about 60% earlier this week, the report said.
Source: https://www.pymnts.com/