FX.co ★ Bitcoin Extends Decline

Bitcoin experienced a decline towards $90,000 on Wednesday, reaching its lowest point in seven months. This downturn is part of a broader sell-off of riskier investments, driven by persistent concerns over high tech valuations and increasing uncertainty about the Federal Reserve's trajectory for interest rate cuts. On Tuesday, the stock market fell for the fourth consecutive session, with significant losses in technology stocks as analysts highlighted worries about a potential bubble. Currently, the market predicts roughly a 47% likelihood of a 25 basis point rate cut by the Fed in December, a considerable decrease from the over 90% probability a month prior. Some Federal Reserve officials have warned against further monetary easing in light of inflationary pressures, cooling earlier optimism that the conclusion of quantitative tightening would enhance liquidity and favor speculative assets. Bitcoin has now decreased by nearly 30% from its peak of over $126,000 in October and is positioned for its first annual decline since 2022.