Bitcoin and ether plunged to their lowest levels in months as investors withdrew from risky assets following a decline in tech stocks and diminishing confidence in a near-term U.S. interest rate cut. Bitcoin fell to $81,668 while ether dropped to $2,661, both down about 12% this week. However, Fed Williams’ outlook slightly boosted investor hopes, and BTC is now trading around $83K.
This decline comes as cryptocurrencies lost $1.2 trillion in market value over six weeks, marking a massive sell-off that also impacted the Hong Kong spot bitcoin ETF, which fell nearly 7%.
Although Bitcoin reached a record high above $120,000 in October, the market remains shaken by last month’s single largest crash involving $19 billion in liquidated positions, according to analysts.
Selling pressure also hit stocks of crypto-related companies including Strategy, Coinbase, and others, with some recording their biggest declines this year. JP Morgan warned that Strategy is at risk of being removed from the MSCI index.
CryptoQuant reports indicate the market is currently the most bearish since the early 2023 bull cycle, suggesting the wave of demand may have peaked, with market sentiment remaining fragile.
