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Bitcoin falls to six per cent amid uncertainty of US economy
(MENAFN) Bitcoin fell over 6% on Friday, reaching its lowest level in six months as uncertainty surrounding the US economy dampened expectations of a Federal Reserve rate cut in December.
The cryptocurrency was trading at $97,190 at 0705 GMT, its weakest since May. Data from CoinMarketCap indicated that the overall value of the global cryptocurrency market, including Bitcoin, fell roughly 6.9% over the past 24 hours to $3.26 trillion.
Bitcoin’s market capitalization dropped 5.8% to $1.94 trillion during the same period, while daily trading volume surged about 50% to $111.1 billion. Despite the recent slump, Bitcoin has gained approximately 4.1% since the start of 2025.
Ethereum, the second-largest cryptocurrency, declined about 9% to $3,220.
The downturn was largely driven by concerns over the US economic outlook. Following a nearly 43-day government shutdown that ended Wednesday, markets have scaled back expectations for a Fed rate cut, amid worries that key employment and inflation data for October might not be released. This leaves the Federal Reserve with less information ahead of its December 10-11 policy meeting.
According to CME FedWatch, traders were pricing in a 45.4% chance of a 25-basis-point Fed rate cut in December on Friday, down from 63.8% a week earlier.
The shortage of official economic data has reduced risk appetite, putting pressure on speculative assets and prompting caution among cryptocurrency traders.
The cryptocurrency was trading at $97,190 at 0705 GMT, its weakest since May. Data from CoinMarketCap indicated that the overall value of the global cryptocurrency market, including Bitcoin, fell roughly 6.9% over the past 24 hours to $3.26 trillion.
Bitcoin’s market capitalization dropped 5.8% to $1.94 trillion during the same period, while daily trading volume surged about 50% to $111.1 billion. Despite the recent slump, Bitcoin has gained approximately 4.1% since the start of 2025.
Ethereum, the second-largest cryptocurrency, declined about 9% to $3,220.
The downturn was largely driven by concerns over the US economic outlook. Following a nearly 43-day government shutdown that ended Wednesday, markets have scaled back expectations for a Fed rate cut, amid worries that key employment and inflation data for October might not be released. This leaves the Federal Reserve with less information ahead of its December 10-11 policy meeting.
According to CME FedWatch, traders were pricing in a 45.4% chance of a 25-basis-point Fed rate cut in December on Friday, down from 63.8% a week earlier.
The shortage of official economic data has reduced risk appetite, putting pressure on speculative assets and prompting caution among cryptocurrency traders.
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