PakGazette– Bitcoin retreated again on Friday, marking its third straight day of declines, as macroeconomic pressures induced by the Federal Reserve’s hawkish stance and recent profit-taking amid record highs sparked a prolonged pullback. .
fell 3.7% to $97,002.0 at 12:46 a.m. ET (05:46 GMT).
It fell below the $100,000 mark on Thursday after Federal Reserve officials signaled a slower pace of rate cuts in 2025, and broader cryptocurrency markets also fell sharply.
Bitcoin Sees Further Profit Taking After Fed Meeting
The world’s largest cryptocurrency hit an all-time high of $108,244.9 on Tuesday, after which prices fell due to profit-taking and an uncertain macroeconomic outlook.
This sell-off intensified further after the Federal Reserve forecast just two more interest rate cuts in 2025, down from previous expectations of four.
The central bank’s hawkish stance weighed on Bitcoin as tighter monetary policy reduces liquidity, making speculative assets like cryptocurrencies less attractive.
Additionally, Federal Reserve Chairman Jerome Powell said that the central bank has no intention of participating in any government initiative to accumulate substantial amounts of bitcoins.
This underlined growing doubts about a Bitcoin Strategic Reserve, given the regulatory hurdles it will likely face.
Incoming President Donald Trump had raised the prospect of a Bitcoin reserve during an interview with CNBC last week.
El Salvador will continue buying Bitcoin despite the IMF warning
El Salvador’s government said Thursday it will continue buying bitcoin, potentially at a faster pace, following a financing deal with the International Monetary Fund.
The country’s president, Nayib Bukele, agreed on Wednesday to reduce Bitcoin’s role in El Salvador’s economy in exchange for a crucial $1.4 billion loan from the IMF. Bukele had in 2021 adopted Bitcoin as El Salvador’s national currency and had even planned to issue bonds backed by the country’s Bitcoin holdings.
The IMF had advised the government to reduce its exposure to the cryptocurrency, and El Salvador’s Bitcoin ambitions largely prevented it from accessing global debt markets.
Still, the country’s Bitcoin reserves have seen a big jump in their valuation after the cryptocurrency’s latest rally.
Crypto Price Today: Most Altcoins Plunge as Crypto Losses Mount
Other cryptocurrencies fell more sharply than Bitcoin, as traders assessed the Federal Reserve’s hawkish tilt. With several consecutive days of declines this week, most altcoins have lost all of the significant gains they posted last week.
The world’s No. 2 cryptocurrency fell 7.5% to $3,3379.39. Ether has fallen for four consecutive days and has lost almost 15% during this period.
The world’s No. 3 cryptocurrency fell 2.5% to $2.3009.
fell 6.4% and 7%, while it fell more than 8% to $0.8965.
Among meme tokens, it plummeted 11.2% to $0.3199.
