Bitcoin has experienced a significant decline this week, dropping below the crucial $100,000 mark following earlier record highs.
As of early Friday, Bitcoin’s value has decreased by 5.9% in the last 24 hours, currently priced at $95,237, based on CoinDesk data.
This downturn is attributed to comments from the Federal Reserve suggesting fewer interest-rate cuts are expected in 2025, negatively impacting both equities and cryptocurrencies.
Recent inflation data showed the personal-consumption expenditures price index rose 0.1% in November, below the anticipated 0.2%.
Although the annual inflation rate remains at 2.4%, above the Fed’s target of 2%, it plays a crucial role in future monetary policy, influencing potential interest-rate adjustments.
Stock pullback
Market strategist Louis Navellier highlighted the pressure on the entire crypto sector due to a pullback in the stock market, with the S&P 500 recording its worst one-day decline since 2008, falling by 2.95% on Wednesday.
Analyst Alex Kuptsikevich remarked that despite Bitcoin’s decline mirroring stock movements, it exhibits resilience, given its tendency for greater losses in the past.
This year has seen substantial gains across the financial markets, with the S&P 500 and Nasdaq Composite rising 23% and 29%, respectively.
Bitcoin has surged over 100%, boosted by anticipated regulatory relief from the incoming Trump administration.
