Bitcoin
On Thursday, Bitcoin fell to levels not seen in over six months, as investors appeared to reduce their exposure to riskier assets and anticipated another interest rate cut by the Federal Reserve next month.
The leading cryptocurrency reached $86,325.81, its lowest level since April 21. Its last closing price was $86,690.11.
The release of better-than-expected US jobs data cast doubt on a possible cut in the central bank’s key interest rate. The US economy added 119,000 jobs in September, significantly more than the 50,000 expected by economists surveyed by Dow Jones.
This report raised the probability of a rate cut in December to nearly 40%, according to the CME Group’s FedWatch tool.
Bitcoin’s decline is part of a massive sell-off in the cryptocurrency market. XRP
fell 2.3% today and is trading below $2.00, while Ether
lost more than 3% and is trading well below $3,000. Dogecoin
remained stable.
The world’s oldest cryptocurrency also weighed on stock prices, even after Nvidia’s spectacular results. Investors with significant stakes in AI-related companies often also own Bitcoin, creating a link between the two investments.
Bitcoin’s price has fallen considerably since the wave of liquidations of highly leveraged cryptocurrency positions in early October.