Bitcoin’s decline continued on Monday as the world’s largest cryptocurrency pulls back further from last week’s all-time high, even though it remains a banner year for bitcoin investors.
Bitcoin fell 2% to just under $nine3,000 as of nine p. m. Greenwich Mean Time, four p. m. EST (price movements of the consistently traded crypto token are maximum referenced in GMT).
The digital asset is on track for its lowest end-of-day price since Nov. 27.
Bitcoin is down 14% from its record high of over $108,000 set last Tuesday, sending it into correction territory for the first time in 4 months.
Stocks of publicly traded crypto companies also struggled Monday, with bitcoin whale MicroStrategy falling 9%, crypto exchange Coinbase sinking 4% and the most valuable bitcoin miner, Marathon Digital, dipping 4%.
All 3 are down at least 20% from their previous month’s highs.
500 billion dollars. That’s roughly how much the overall market cap on all cryptocurrencies has dropped since last Monday’s all-time high of $3. 9 trillion, according to CoinGecko. Bitcoin accounts for around 56% of the overall crypto market, with a market cap of $1. 9 trillion.
The recent sell-off coincides with losses in dangerous monetary assets in addition to stocks, with the S&P 500 falling 2% over the past week. The decline was catalyzed by Wednesday’s Federal Reserve meeting, where the U. S. central bank expressed greater considerations about persistent inflation and planned fewer interest rate cuts in 2025 than expected. This is bad news for riskier assets, like cryptocurrencies, because investors tend to keep their cash in high-yield, low-risk government bonds when interest rates are higher. “Monetary easing has almost favored the price of bitcoin, and the opposite has a negative effect on the price,” Yuya Hasegawa, a cryptocurrency market analyst at the Japanese cryptocurrency exchange bank, wrote in emailed comments on Monday. .
Surprising corrections are also not unusual for bitcoin, which suffered a sell-off of more than 20% this summer and more than 70% between 2021 and 2022 before hitting its all-time high this month. Bitcoin remains hugely higher in 2024, gaining 120% year-to-date, a 36% increase since the election, which brought new crypto bull Donald Trump back to Washington. Other assets that have risen have also taken a breather, such as Tesla shares, which are down 12% from their record set last week but are trading more than 70% higher than before the election.
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