Investing.com– Bitcoin fell on Friday and was poised for heavy losses this week as heightened concerns over slower U.S. interest rate cuts and a potential government coin sale dented sentiment for the cryptocurrency.
Crypto markets also largely followed declines in broader risk-driven markets, as traders turned to safe havens such as gold and the dollar amid heightened economic uncertainty.
The world’s largest cryptocurrency was also subject to profit-taking after it tripled its value by 2024. Broader cryptocurrency prices also fell in tandem with Bitcoin.
down 0.6% to $93,925.0 by 00:56 ET (05:56 GMT). The coin briefly fell to $92,474.1.
Bitcoin is headed for weekly losses
Bitcoin has traded down around 4.4% this week, its worst performance since late September.
In addition to broader risk sentiment, Bitcoin was also pressured by reports that the Justice Department had received court approval to sell about $6.5 billion worth of Bitcoins seized 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 turn the government’s confiscated holdings of the token into a strategic reserve.
Trump has promised to enact crypto-friendly regulations and has also floated the possibility of a strategic Bitcoin reserve.
But analysts have expressed some doubts about how he will create the reserve, given that Congress is unlikely to approve any additional fiscal spending on the government’s purchase of Bitcoin.
Still, optimism about Trump fueled Bitcoin’s sharp gains through the end of 2024, pushing the coin to a record high of over $108,000. Trump has also been seen appointing a host of cryptocurrency-leaning candidates to key regulatory roles.
Today’s Crypto Price: Altcoins Fall as Non-Farm Wages Rise
Broader cryptocurrency prices followed Bitcoin’s weakness, as risk appetite declined in anticipation of key data due later 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 ill for risk assets.
The world’s No. 2 cryptocurrency 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%.
