Bitcoin Price Update

Investing.com – Bitcoin extended declines on Friday amid soft year-end trading volumes, while investors remained cautious about the cryptocurrency outlook after the Federal Reserve turned hawkish last week.

Bitcoin fell 2.1% to $96,403.7 by 01:30 ET (06:30 GMT).

Market Reactions

Bitcoin pulled back on Thursday as markets responded to inaccurate chart data from TradingView. The cryptocurrency dipped toward $95,000 after social media users highlighted an anomaly on TradingView’s Bitcoin dominance chart, which incorrectly displayed Bitcoin’s share of the total crypto market cap as dropping to 0%.

Although the error was later corrected, it reportedly triggered sudden trading reactions that pushed prices lower. According to CoinGlass data, roughly $33 million in Bitcoin long positions were liquidated within four hours.

Weekly Performance

Bitcoin on track for second consecutive weekly fall

Bitcoin was set to experience its second consecutive week of declines as the rally induced by Donald Trump’s presidential election victory lost momentum following the Fed meeting. The rally had pushed prices to an all-time high of $108,244.9 last week, but profit-taking amid macroeconomic pressures from the Fed rate outlook led to a downturn.

The central bank lowered rates by 25 basis points but indicated only two rate cuts for the upcoming year, down from previous expectations for four. This shift caused investors to reassess their positions in speculative assets like Bitcoin, contributing to the price decline.

Altcoin Performance

Crypto prices today: most altcoins lower amid liquidity concerns

Other cryptocurrencies also fell in line with Bitcoin prices and were poised for weekly losses. Demand for speculative assets remained subdued after the hawkish Fed raised liquidity concerns.

• World no. 2 crypto Ether was down 1.5% at $3,379.39, following a nearly 5% drop the previous day.
• World no. 3 crypto XRP decreased by 2.8% to $2.2187 and was set to fall nearly 4% for the week.
• Solana fell 1.7%, Polygon lost 1%, and Cardano dropped over 8% to $0.8965. Among meme tokens, Dogecoin was down 2.6%.