FX.co ★ Cryptocurrencies Under Pressure

Bitcoin experienced a significant decline, dropping over 5% to approximately $85,000 on the first trading day of December. This downturn revisits the lows witnessed in April and continues the nearly 17% decrease observed in November, marking the steepest monthly decline since the crypto market turmoil of 2021. The decrease in risk appetite among investors can be attributed to rising caution ahead of the Federal Reserve's imminent policy decision. Concurrently, in Japan, expectations are mounting for a potential interest rate increase by the Bank of Japan within the month. Additionally, market sentiment in Asia remains fragile following a warning by the People’s Bank of China regarding unlawful activities involving digital currencies. This announcement has contributed to declines in Hong Kong-listed firms associated with cryptocurrencies, exacerbating the global sell-off. Similarly, Ether and Solana also faced declines, each dropping around 5%.