Bitcoin's price falls to 6-month low: What's the reason?
What's the story
Bitcoin, the world's largest cryptocurrency by market cap, has hit a six-month low. The digital currency fell 1.59% to $93,684 today. This is a sharp decline from its peak of nearly $125,000 in October and the lowest it has been since May. The drop comes amid expectations that the US Federal Reserve may not cut interest rates next month as previously anticipated.
Trends
Recent performance and market sentiment
Bitcoin has lost over 10% in the last seven days, marking its third consecutive weekly loss. The latest decline has erased over 30% of the gains made since January. Despite this steep fall, Bitcoin is trying to recover slowly after briefly falling below $93,000. Other cryptocurrencies like Ethereum and Solana have also seen their prices slip amid these market conditions.
Analysis
Expert insights on Bitcoin's price drop
Edul Patel, CEO of Mudrex, attributed the recent Bitcoin price drop to inflation concerns in the US. He noted that President Donald Trump's proposed tariff cuts to ease food prices have added short-term volatility. However, Patel also observed that whales and market makers have increased the long positions since last week, actively buying the dip below $100,000.
Market dynamics
Broader market factors influencing Bitcoin's price
Avinash Shekhar, the Co-Founder & CEO of Pi42, said the Bitcoin price drop was more about the market digesting overstretched sentiment and thin liquidity. He noted attempts to stabilize near $95,000, but every rebound is meeting supply as both institutional and retail participation remain muted.