Bitcoin drops to $121,000: traders take profits after record growth

Bitcoin's price fell to $121,000 after a record jump to over $126,000. Investors are taking profits, and the market is fluctuating due to uncertainty and the economic situation in the US. This is reported by UNN with reference to Investing.

Details

By 01:53 AM ET (05:53 GMT), Bitcoin had fallen 0.5% to $121,525.6.

It is noted that this week Bitcoin showed restrained dynamics, "despite reaching a record high of over $126,000." At the same time, Bitcoin still shows a growth of about 6.2% in October, which is traditionally a successful month for the coin.

Last year, Bitcoin grew by almost 11% in October, but this figure was surpassed by a record jump of 37% in November after Donald Trump's victory in the 2024 presidential election. The current cryptocurrency decline is explained by profit-taking and "investor uncertainty about the long-term reliability of corporate treasury bonds."

Investors also remained wary of the US government shutdown, while uncertainty over the trajectory of interest rates curbed Bitcoin's growth, the publication indicates.

Bitcoin "is not an asset class"

Hargreaves Lansdown, the UK's largest retail investment platform, told investors this week that Bitcoin "has no intrinsic value," despite landmark regulatory changes regarding crypto investing in the country. And also that cryptocurrency does not have characteristics that would require its inclusion in growth or income portfolios.

Hargreaves issued the warning immediately after the UK's Financial Conduct Authority lifted a four-year ban on retail investors owning crypto products. Retail buyers will now be able to buy Bitcoin and other cryptocurrencies through regulated exchanges, similar to the US decision in early 2024 that allowed the creation of crypto-asset exchange-traded funds.

However, Hargreaves did not rule out the possibility of offering crypto products on its platform, acknowledging that some clients still "wish to speculate with cryptocurrency."

Cryptocurrency price today

On Friday, the cryptocurrency market remained relatively calm, with prices ranging from stable to slight declines.

Ether, the second most valuable cryptocurrency, fell 1.4% to $4,365.73, while XRP remained almost unchanged at $2.8255. Solana lost 2% of its value, Cardano added 0.4%, and Binance Coin fell 2.7%, retreating from its record high earlier in the week.

Among meme tokens, Dogecoin rose 1.5%, and $TRUMP fell 2.3%.

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Recall

Earlier, UNN wrote that Bitcoin rose by almost 10%, updating its all-time high to over $125,000, thanks to record inflows into spot Bitcoin ETFs and seasonal October optimism. The macroeconomic situation in the US and the weakening dollar also contributed to the growth, making cryptocurrencies attractive to investors.