Investing.com– Bitcoin extended its slide on Friday amid weak year-end trading volumes, as investors remained cautious about the cryptocurrency’s outlook after the Federal Reserve turned hawkish last week.
down 2.1% to $96,403.7 by 01:30 ET (0630 GMT).
Bitcoin retreated on Thursday as markets appeared to react to inaccurate chart data from TradingView.
The cryptocurrency fell toward $95,000 after social media users flagged an anomaly in TradingView’s Bitcoin Dominance chart, which incorrectly showed Bitcoin’s share of the total crypto market cap falling to 0%.
Although the error was later corrected, it reportedly caused sudden trading reactions that pushed prices lower.
According to CoinGlass, approximately $33 million in bitcoin long positions were liquidated within four hours.
Bitcoin on track for second consecutive weekly decline
Bitcoin was set to fall for a second week in a row as a rally fueled by Donald Trump’s presidential election victory lost steam after the Fed meeting was disrupted.
The gain pushed prices to an all-time high of $108,244.9 last week, after which prices fell due to profit-taking amid macroeconomic pressures triggered by the Fed rate outlook.
The central bank cut rates by 25 basis points, but indicated just two rate cuts for the coming year, compared with previous expectations for four cuts.
This change caused investors to re-evaluate their positions in speculative assets like Bitcoin, contributing to its price decline.
Cryptocurrency price today: Most altcoins lower on liquidity concerns
Other cryptocurrencies also fell following Bitcoin prices and were set for weekly losses. Demand for speculative assets remained muted after the Fed raised liquidity concerns.
The world’s No. 2 cryptocurrency was 1.5% lower at $33,379.39, after falling nearly 5% the previous day.
The world’s No. 3 cryptocurrency fell 2.8% to $2.2187 and was set to fall nearly 4% on the week.
fell 1.7% and lost 1%, while falling more than 8% to $0.8965. Among meme tokens, it fell 2.6%.
