PakGazette– Bitcoin fell on Friday and is expected to suffer heavy losses this week, as growing concerns about slowing U.S. interest rate cuts and possible government currency sales eroded the sentiment towards cryptocurrencies.
Crypto markets also largely tracked a risk-driven slowdown in broader markets, as traders turned to safe havens like gold and the dollar amid heightened economic uncertainty.
The world’s largest cryptocurrency was also subject to profit-taking after tripling in value through 2024. Broader cryptocurrency prices also fell along with Bitcoin.
fell 0.6% to $93,925.0 at 12:56 a.m. ET (05:56 GMT). The currency had briefly fallen to $92,474.1.
Bitcoin Heads for Weekly Losses
Bitcoin was trading down about 4.4% this week, its worst performance since late September.
In addition to a broader sentiment of risk aversion, Bitcoin also came under pressure from reports that the Department of Justice had received court approval to sell around $6.5 billion in confiscated Bitcoin on the Silk Road black market.
While the Justice Department sale represents further selling pressure on Bitcoin, it also dashed hopes that incoming President Donald Trump would convert government-seized token holdings into a strategic reserve.
Trump has promised to enact cryptocurrency-friendly regulations and has also raised the possibility of a strategic Bitcoin reserve.
But analysts expressed some doubts about how it will create the reserve, given that Congress is unlikely to approve any additional tax spending on government purchases of Bitcoin.
Still, optimism about Trump fueled strong gains in Bitcoin through the end of 2024, taking the currency to all-time highs of more than $108,000. Trump was also seen nominating a number of cryptocurrency-friendly candidates for key regulatory roles.
Crypto Price Today: Altcoins Fall as Nonfarm Payrolls Loom
Broader cryptocurrency prices tracked weakness in Bitcoin as risk appetite soured in anticipation of key data due later on Friday, likely influencing interest rate expectations.
The reading comes just days after the Federal Reserve’s December meeting minutes reiterated the bank’s view of fewer interest rate cuts in 2025, which bodes poorly for risk-driven assets. .
The world’s No. 2 cryptocurrency fell 2% to $3,262.51, while it fell 2.3% to $2.2949.
and fell between 0.8% and 3%, while among meme tokens, it lost 2.8%.
