On Tuesday, bitcoin fell for the fourth day in a row, as the rally sparked by Donald Trump's victory in the presidential election faded. The decline was exacerbated by the Federal Reserve's dovish stance last week.
Writes UNN with reference to Investing.
As of 00:22 Eastern Time (05:22 GMT), bitcoin was down 2% to $94,159.4. The day before, the price fell below $93,000.
Last week, the token dropped below the key $100,000 level for the first time since November due to comments from Fed officials about slowing the pace of interest rate cuts.
In total, bitcoin has lost ground six times over the past seven days. After the election, a rally pushed bitcoin's price to an all-time high of $108,244.9, but due to profit-taking and macroeconomic pressure, the price began to fall rapidly. Despite the 25 basis point rate cut, the Federal Reserve announced only two rate cuts next year, although it had previously predicted four. This forced investors to reconsider their strategies for speculative assets such as bitcoin, which exacerbated its price decline.
Amid the decline in cryptocurrencies, shares of related companies also lost value. On Monday, shares of MicroStrategy fell by 9%, Coinbase Global Inc - by 4%, and Riot Platforms - also showed a decline. MicroStrategy came under additional pressure after announcing the sale of 1.3 million shares to purchase 5,262 bitcoins.
Thus, the situation on the cryptocurrency market remains tense, and investors are reconsidering their positions amid macroeconomic uncertainty.
Shares of MicroStrategy Incorporated fell by almost 9%, and Coinbase Global Inc lost 4% of its value. Shares of Riot Platforms also fell. In addition, MicroStrategy came under additional pressure after announcing the sale of 1.3 million shares to acquire 5,262 bitcoins.
Among the leading bitcoin miners, shares of Marathon Digital Holdings Inc fell by 3.6%.
At the same time, other cryptocurrencies showed growth on Monday. Nevertheless, the growth rate remained limited due to depressed demand for speculative assets after the Federal Reserve's hawkish policy statements, which affected investor sentiment.
Ether, the second largest cryptocurrency by capitalization, rose by 3.2% to reach $3,431.48. Despite a previous decline last week, it has been showing recovery over the past two days.
XRP, the third most important cryptocurrency, added 3.1% to reach $2.2627.
Among other assets, Solana rose by 3.4%, Polygon gained 5%, and Cardano by 2%. Among meme cryptocurrencies, Dogecoin rose by 1.8%.
Recall
Last week, bitcoin dropped by 2.6% to $101,153 after Fed Chairman commented on the impossibility of accumulating cryptocurrency by the central bank.