Bitcoin drops below $100,000 as strong US dollar hits crypto
Bitcoin has once again fallen below the $100,000 level, seeing a decline of over 5% over the past 24 hours.
The leading cryptocurrency, which has been gaining momentum amid anticipation surrounding Donald Trump’s inauguration, It saw its value drop sharply from $102,000 to $95,000 in just two days. as a result of, Other major cryptocurrencies also fell sharply, With Ethereum, Cardano, Solana, and Dogecoin down 7%, 13%, 7%, and 10%, respectively.
The sudden decline in the value of Bitcoin can be attributed to several factors. The rise in the US dollar has shifted investor preference towards fiat currency, putting pressure on safe-haven assets such as Bitcoin. Growing concerns about inflation have further unnerved investors, leading to fears that the Federal Reserve may delay expected interest rate cuts. Moreover, the decline in shares of major technology companies, including Super Micro Computer (SMCI(and micron technology)Mo), created ripple effects, further impacting the price of Bitcoin.
This trend highlights how Bitcoin is becoming more mainstream and responding to stock market and macroeconomic factors. This week, the movements of the cryptocurrency market will be closely monitored, The Federal Open Market Committee (FOMC) meeting is scheduled for Wednesday, and jobs reports are scheduled for release on Friday.
Initial Excitement surrounding Bitcoin ETFs earlier in the week diminished due to slowdown in inflows. After attracting over $900 million in two consecutive days, most Bitcoin ETFs saw outflows on January 7.Resulting in net inflows of only $52 million.
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