FX.co ★ Bitcoin Hits 6-Month Low

Bitcoin dropped to approximately $96,000 on Friday, reaching its lowest point in six months. This decline was part of a wider sell-off in risk assets, driven in part by diminished expectations for a rate cut by the US Federal Reserve in December. Technology stocks led a global market downturn as concerns persisted about inflated valuations in the AI sector, and the reopening of the US government did little to boost market sentiment. Additionally, investors became more wary due to divergent opinions among Federal Reserve officials, which reduced the likelihood of a rate cut next month. Currently, traders estimate only a 51% probability of a reduction, a significant drop from the over 95% chance predicted a month ago. Cryptocurrencies have been struggling to recover since October's flash crash, which triggered record liquidations and deleveraging, highlighting the ongoing risk aversion in the market. Further adding to the pressure, reports suggested possible Japanese regulations targeting cryptocurrency treasury companies.