Khaberni - The weekly digital currency market report announced that Bitcoin dropped to a six-month low at $95,785, with a weekly decline of 6%. Ethereum also fell to $3,175, its lowest level in ten days, registering a weekly decline of 7.6%. Data indicates that Bitcoin has lost more than 20% of its value over the past month, officially placing it in a bear market. This decline comes as investors await a series of U.S. economic data following the reopening of the government after a 43-day shutdown.
Monetary Policy and Market Sentiments
With limited interest from investors, digital currencies remain linked to the performance of U.S. stock markets, as market experts suggest. Juan Perez, trading manager at Monex USA, explained that the lack of enthusiasm towards high-risk assets is directly reflected in the cryptocurrency, confirming that it has not turned into an effective hedging tool during times of economic anxiety. Market data revealed that long-term Bitcoin holders are still continuing to take profits; long-term investors sold about 815,000 Bitcoin in the last thirty days, the highest level since January 2024. ETFs recorded outbound flows of $870 million in a single day, since reaching the market peak on October 7th.
Since that peak, the value of cryptocurrencies has lost more than a trillion dollars, approximately 24% of its market value, indicating a decline in risk appetite and increasing uncertainty in the future outlook. In this context, the probability of a U.S. interest rate cut in December has dropped to about 40% after being close to 90% at the beginning of the month, contributing to the increased pressure on high-risk assets. Consequently, the decline and volatility continue, and sentiments remain unstable as investors wait for any new economic indicators and changes in monetary policy.
