Bitcoin, the world’s largest cryptocurrency, fell by 5 per cent on Friday, dropping to $94,483 amid a broader risk-off sentiment that swept through global financial markets.
The decline marks the lowest level for the digital asset in six months and reflects growing investor caution driven by a combination of macroeconomic factors.
Market analysts attribute the downturn to fading expectations of near-term interest rate cuts by the United States Federal Reserve.
Read ALSO: Bitcoin smashes past $124K for first time
The prospect of sustained higher interest rates has dampened investor appetite for riskier assets, including cryptocurrencies.
In addition, concerns over tightening global liquidity and the perceived overvaluation of technology stocks have contributed to increased market volatility and a shift away from speculative investments.
Minutes after reaching its intraday low, Bitcoin recovered slightly, trading at $95,053.54, down 4.59 per cent as of 7:48 a.m. Eastern Time.
Read ALSO: Bitcoin Soars to $109,241 Amid Trump Inauguration and Meme Coin Launch – Ravenewsonline
Ethereum, the second-largest cryptocurrency by market capitalization, also recorded losses, falling 4.36 per cent to $3,088.78.
The recent price action extends a string of losses for digital assets, raising questions about the short-term outlook for the crypto market as investors await further signals from central banks and economic data releases.
