FX.co ★ Bitcoin Falls Below $90K

Bitcoin experienced a decline, dropping below $90,000 for the first time since April, before finding some stability around the $91,000 mark. This downturn was driven by a widespread and vigorous risk aversion due to concerns over inflated valuations and the possibility of fewer interest rate cuts by the Federal Reserve. Persistent fears regarding market frothiness and overstated promises of datacenter capital expenditures led investors to divest from technology stocks and speculative assets. This situation was further compounded by pressure on economic growth, as several private economic reports signaled a weakening labor market and uncertainties regarding consumer resilience. Meanwhile, hawkish statements from Federal Open Market Committee (FOMC) members fueled expectations that the Federal Reserve would abstain from rate cuts in the upcoming month, dismantling earlier beliefs that the end of quantitative tightening could boost liquidity and benefit speculative assets. This decline puts Bitcoin on course for its first annual decrease since 2023, now 25% below the all-time high of $126,200 reached in October.