Bitcoin fell below $96,000 on Friday for the first time in more than six months, as a broad sell-off hit high-risk assets amid fading expectations that the U.S. Federal Reserve will cut interest rates next month.
In its latest trading session, Bitcoin dropped 2.8% to $96,009, after falling earlier to $95,885.33, its lowest level since May 7. The world’s largest cryptocurrency by market value is heading toward its third consecutive weekly decline, having lost nearly 24% since its peak in early October.
This downturn has come as risky assets faced mounting pressure in recent days due to diminishing hopes of a near-term U.S. interest rate cut. An increasing number of Federal Reserve policymakers have expressed caution about further monetary easing, shifting overall market sentiment.
Ether, the second-largest cryptocurrency, also slid 1.5% to $3,133.76, reflecting the broader weakness across digital assets.
Analysts believe this drop may signal the start of a prolonged correction phase or a more extended pullback in the crypto market, rather than a brief period of volatility. Investors appear to be reassessing the risks associated with digital assets, particularly amid global economic uncertainties and unclear monetary policy directions.
The decline is also expected to affect stocks of crypto-related companies and Bitcoin-linked investment funds, which typically react strongly to movements in the cryptocurrency market.
Bitcoin had previously reached an all-time high of more than $126,000 on October 6, supported by strong institutional inflows into Bitcoin exchange-traded funds (ETFs) and a weaker U.S. dollar, which boosted demand for digital assets.
