Bitcoin drops 10% from record high amid profit-taking and Fed shift

Bitcoin has dropped over 10% from its record $108,000 peak earlier this week, trading at $97,343 today. The slide, attributed to year-end profit-taking and reduced expectations for Fed rate cuts in 2025.. Experts caution short-term volatility but note such corrections are common in bull markets. Despite the downturn, Bitcoin remains up nearly 50% since the US presidential election..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..By Monique Mulima___STEADY_PAYWALL___.A Bitcoin slide from a record high earlier this week extended to more than 10% at one point, as reduced scope for looser US monetary policy crimped speculative zeal..The price of the original cryptocurrency dropped as low as $95,564 on Thursday, two days after setting an all-time peak just above $108,000. The downturn weighed heavier on smaller tokens like Ether and Dogecoin..It's "pretty typical" to see such corrections in crypto bull markets, said Strahinja Savic, head of data and analytics at FRNT Financial..The Federal Reserve's hawkish pivot on Wednesday weighed on most risk assets. Bitcoin is still up almost 50% since pro-crypto Donald Trump's victory in the US presidential election on Nov. 5. ."It looks like some year-end profit taking," said Edward Chin of Parataxis. "There wasn't anything fundamental that triggered the selloff.".With fewer Fed rate cuts now expected for 2025, some investors may be choosing to reduce their exposure and take profits.."Technically, caution is warranted in the short term," Chris Weston, head of research at Pepperstone Group, wrote in a note. "This doesn't mean we're due to see a collapse in price anytime soon, but the momentum has clearly come out of the move and the buyers have lost dominance and control of the tape.".Bitcoin changed hands at $97,343 as of 5:04 a.m. on Friday in London. It has more than doubled this year, helped by a flood of inflows into US exchange-traded funds for the token..Read also:.🔒The Economist: Bitcoin's 138% surge in '24 is a nonsense-free rally'Bitcoin maximalist' Stafford Masie: Donald Trump, "digital gold", and strategic Bitcoin reservesCrypto lessons from exchange failures and the rise of self-custody.© 2024 Bloomberg L.P.

Bitcoin drops 10% from record high amid profit-taking and Fed shift

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