Bitcoin fell sharply to its lowest level in six months as renewed market uncertainty unsettled investors.
Traders linked the drop to fading hopes of U.S. rate cuts and weakening liquidity conditions.
Bitcoin slipped by 5 percent on Friday, November 14, dropping to $94,483 as investors reacted to renewed uncertainty across global markets. The decline continues a recent downward trend and marks the first time in six months that the cryptocurrency has fallen to this level.
Traders say the latest slide is tied to growing doubts about the possibility of the U.S. Federal Reserve cutting interest rates anytime soon. Hopes for a near-term rate cut had helped lift crypto prices earlier in the year, but the mood has changed. With the outlook now unclear, many investors are pulling back from assets considered risky.
There are also fresh concerns about liquidity in the wider financial market. Some analysts believe worries about stretched valuations in the technology sector are adding to the pressure, prompting many investors to reduce exposure and hold safer positions.
Shortly after hitting its lowest point of the day, Bitcoin recovered slightly but was still down 4.59 percent, trading at $95,053.54 by 7:48 am ET. Ethereum also recorded losses, falling 4.36 percent to $3,088.78 as the broader crypto market struggled to find stability.
