The largest cryptocurrency by market value is down about 12% since June, and traded at around $2,680 on Friday.
It surged 83% in the first six months of this year, rebounding in part from a 64% plunge seen in 2022 as the digital asset sector was roiled by scandals and bankruptcies.
The Federal Reserve left interest rates unchanged last Wednesday, but signaled that interest rates will be higher for longer.“The Federal Reserve’s hawkish stance has heightened investor apprehension, leading to declines in both traditional and digital asset markets,” said Hosam Mahmoud, a research analyst at CCData.
“Current investors got very excited about the possibility of a Bitcoin ETF spurring a new wave of demand,” said Peter Tchir, head of macro strategy at Brean Capital. However, the increasing prospects of a US federal government shutdown also has some Bitcoin advocates predicting a rally similar to one that happened in response to the regional bank crisis earlier this year.