Bitcoin extended its decline from this week’s record high to nearly 15 percent as aggressive signals from the US Federal Reserve prompted traders to sell assets that have more than doubled this year. The native cryptocurrency fell as much as five percent to $92,600 on Friday morning in New York, after setting an all-time high of just above $108,000 earlier this week.
The crypto price drop weighed more heavily on smaller tokens ranging from Ether to Dogecoin, and came as stocks in Asia and Europe also traded lower. A group of U.S. exchange-traded funds (ETFs) that invested directly in Bitcoin on Thursday hit a 15-day streak of continuous inflows and posted record outflows of $680 million, according to data compiled by Bloomberg.
Bitcoin price today
The increased volatility comes after crypto assets staged a rally following Donald Trump’s victory in the US presidential election on November 5. The positioning had become overly bullish, leaving digital assets vulnerable to a change in tone from the US Fed, which is sharpening its focus on bringing inflation back to target.
Uncertainty in crypto markets looks set to continue through the holidays as Trump prepares to take office and level down the threat of tariffs against US allies and adversaries. With the US Fed likely to slow the pace of easing, the focus shifts to how quickly traditional financial firms adopt this asset class.
