Bitcoin Rally Cools As Traders Take Profits

(MENAFN- Yolo Wire) The price of %Bitcoin (CRYPTO: $BTC) has pulled back and is once again trading below $90,000 U.S. as traders book profits following a big rally over the past week.

Bitcoin is currently trading at $89,600 U.S. after peaking at an all-time high above $93,000 U.S. in recent days. Analysts say traders are likely taking profits at the end of a dizzying week for cryptocurrencies.

However, comments from U.S. federal Reserve Chair Jerome Powell may have thrown some cold water on the %Crypto rally and led traders and investors to take money off the table.

In a speech to business leaders on Nov. 14, Powell struck a hawkish tone, saying the central bank is in no hurry to lower interest rates.

“The economy is not sending any signals that we need to be in a hurry to lower rates," said Powell, who noted that the U.S. economy and labour market remain strong.

Those comments have reduced expectations for a Fed interest cut at the central bank’s upcoming December meeting. Futures traders are placing odds of a December rate cut at 50%.

Spot Bitcoin exchange-traded funds (ETFs) saw strong outflows of $400 million U.S. after Powell’s comments.

The pullback comes after Bitcoin enjoyed a massive rally over the past week following the conclusion of the U.S. election.

In the last month, Bitcoin’s price has risen from $60,000 U.S. to right around $90,000 U.S. So far in 2024, the largest cryptocurrency’s price has gained 102%.

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