Bitcoin (COIN:BTCUSD) sank toward the $95,000 mark on Friday, extending a broad pullback across risk assets as traders increasingly bet that the Federal Reserve will hold off on lowering interest rates in December.
The world’s largest cryptocurrency remained under heavy pressure, setting up its third straight weekly decline as institutional participation in crypto markets continued to weaken.
By 09:23 ET (14:23 GMT), Bitcoin had plunged 7.1% to $95,678—its lowest level since May—after briefly touching an intraday trough of $94,796.0.
Rate Cut Expectations Shrink Amid Heightened U.S. Uncertainty
Expectations for a December rate cut evaporated quickly this week as uncertainty surrounding the U.S. economic outlook deepened.
Much of the anxiety stemmed from the nearly 43-day U.S. government shutdown, which ended Wednesday. Officials suggested that October’s key employment and inflation reports may “never” be released because of the disruption, leaving policymakers without crucial data.
This data void leaves the Fed effectively navigating blind into its December 10–11 meeting, with markets now leaning toward a prolonged pause.
CME FedWatch data shows traders pricing in only a 45.4% chance of a 25-basis-point cut—down sharply from 63.8% a week earlier.
The lack of economic clarity has dampened risk appetite across markets, prompting traders to avoid more volatile assets, including cryptocurrencies.
Bitcoin on Track for a Third Weekly Loss as Institutional Interest Weakens
Bitcoin is now down roughly 9% for the week and appears set for its third consecutive weekly drop.
Much of the selling pressure has been tied to a pullback in institutional buying, particularly from corporate treasuries and spot bitcoin ETFs.
Iliya Kalchev, Nexo Dispatch Analyst, noted that “On-chain data shows Bitcoin approaching the $95,000–$98,000 ‘HODLers Wall,’ an area of concentrated long-term holding that has historically acted as solid support.”
He added, “Market positioning looks cleaner following recent liquidations, with funding rates and open interest suggesting a more balanced setup heading into next week.”
Spot Bitcoin ETFs listed in the U.S. recorded nearly $897 million in outflows on Thursday, according to SoSoValue, putting the group on course for a third week of withdrawals. Institutional interest has cooled as Bitcoin has been stuck in a narrow trading band through most of October and early November.
Bitcoin ETFs See Second-Largest Daily Outflow Since Inception
U.S. spot Bitcoin ETFs logged $869.9 million in outflows on Thursday—their second-biggest single-day redemption since launch.
Grayscale’s Bitcoin Mini Trust led withdrawals with $318.2 million exiting the fund. BlackRock’s IBIT followed with $256.6 million, while Fidelity’s FBTC saw $119.9 million pulled.
Additional outflows hit Grayscale’s GBTC as well as ETF offerings from Ark/21Shares, Bitwise, VanEck, Invesco, Valkyrie, and Franklin Templeton.
Altcoins Deep in the Red as Crypto Market Weakness Broadens
Crypto markets broadly mirrored Bitcoin’s slide, with most major alternative tokens headed for weekly losses.
- Ether plunged more than 8% to $3,139.95 and is down over 12% this week.
- BNB slipped 4.8% and is off roughly 8% for the week.
- XRP fell 7.7%.
- Solana and Cardano each dropped more than 9%.
- Dogecoin shed 8.6%, while $TRUMP fell 4.3%.