The Latest on Bitcoin: Price Declines and Monthly Fall
Bitcoin, the most popular cryptocurrency, has been experiencing declines in its price recently, with the token set for its first monthly fall since early August. Here are the key details:
Bitcoin Price Update
- Bitcoin fell 1.2% to $92,733.4 by 01:11 ET (06:11 GMT).
- The cryptocurrency hit a low of $91,522 on Monday but saw a recovery as dip buyers emerged.
- Bitcoin recorded its second consecutive weekly fall last week and has fallen in five out of the last six sessions.
Reasons for the Decline
Bitcoin is set to lose nearly 4% in December, which is attributed to the U.S. Federal Reserve’s hawkish tilt. The token had previously surged by almost 40% in November following Donald Trump’s presidential election victory. However, the rally came to a halt after reaching an all-time high of $108,244.9. The decline was mainly due to profit-taking and macroeconomic pressures influenced by the Fed’s rate outlook.
The Fed’s indication of only two rate cuts for the upcoming year, as opposed to the previous expectation of four cuts, prompted investors to reassess their positions in speculative assets like Bitcoin, leading to the recent price decline.
Crypto Market Impact
Crypto Stocks Decline
Not only Bitcoin, but crypto-related stocks also fell on Monday in line with the downtrend. Companies such as MicroStrategy Incorporated, Coinbase Global Inc, Riot Platforms, and Marathon Digital Holdings Inc all experienced losses.
Altcoins Follow Bitcoin’s Lead
Other cryptocurrencies have also seen declines in their prices, mirroring Bitcoin’s trend. Here are some key updates:
- Ethereum fell 2.1% to $3,357.48, on track to drop nearly 10% this month after a strong surge in November.
- Ripple (XRP) fell 2.6% to $2.0299.
- Litecoin, Polkadot, and Solana all experienced price declines as well.
The current market sentiment remains risk-off, as demand for speculative assets continues to be subdued across the board.