By Bitcoin, the world’s largest cryptocurrency by market value, fell 1.59% to $93,684 at 4:21 p.m. ET (3121 WAT) on Sunday, before rebounding to $95,050 by 7:29 a.m. WAT on Monday.
Since peaking on October 7, the broader crypto market capitalization has plunged by over $1 trillion, or 24%. Bitcoin also hit its lowest level in six months on Friday amid a broad sell-off in risk assets, triggered by fading expectations of a U.S. Federal Reserve interest rate cut at its upcoming policy meeting.
Markets now price in only about a 40% chance of a December rate cut, down sharply from nearly 90% earlier this month and just over 60% last week. Selling in U.S. equities eased slightly ahead of the weekend, but investors remain cautious as they anticipate a series of economic data releases following the government’s reopening after a record 43-day shutdown, according to Reuters.
Analysts describe the outlook for Bitcoin as bearish, with investors concerned that the Fed may hold off on easing and that AI-related stocks have become overvalued.
Crypto research firms have highlighted heightened profit-taking among long-term holders. According to Glassnode, long-term Bitcoin investors have been offloading assets in recent days, while CryptoQuant reports that 815,000 Bitcoin has been sold over the past 30 days — a record high since January 2024.
