Bitcoin has again slipped below the $100,000 mark, experiencing a decline of over 5% in the past 24 hours.
The leading cryptocurrency, which had been gaining momentum amid anticipation surrounding the inauguration of Donald Trump, has seen its value drop sharply from $102,000 to $95,000 in just two days. As a result, other major cryptocurrencies also sharply declined, with Ether, Cardano, Solana, and Dogecoin dropping by 7%, 13%, 7%, and 10%, respectively.
The sudden decline in Bitcoin’s value can be attributed to several factors. The strengthening U.S. dollar has shifted investor preference toward the fiat currency, putting pressure on safe-haven assets like Bitcoin. Growing inflation concerns have heightened investor anxiety, leading to fears that the Federal Reserve might postpone anticipated rate cuts. Furthermore, the downturn in major tech stocks, including Super Micro Computer (SMCI-6.40%) and Micron Technology (MU-2.51%), has created ripple effects, further impacting Bitcoin’s price.
The trend highlights how Bitcoin is becoming more mainstream and responding to the stock market and macroeconomic factors. This week, crypto market movements will be closely watched, with the Federal Reserve’s FOMC meeting due on Wednesday and job reports set to be released on Friday.
The initial excitement surrounding Bitcoin ETFs earlier in the week has waned due to a slowdown in inflows. After attracting more than $900 million in two consecutive days, most Bitcoin ETFs experienced outflows on January 7, resulting in net inflows of only $52 million.
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