Bitcoin fell sharply over the weekend, extending its decline to a six-month low as investors reacted to diminishing expectations of a U.S. Federal Reserve rate cut next month. The world’s largest cryptocurrency was down 1.59% at $93,684 at 4:21 p.m. ET (2121 GMT) on Sunday, after sinking on Friday during a broader sell-off in global risk assets.
The downturn followed a slide earlier on Saturday, when bitcoin touched its weakest level since May as markets reassessed the likelihood of monetary easing. Selling pressures in U.S. equities eased slightly before the weekend, but overall sentiment remained cautious ahead of a heavy economic data calendar following the government’s reopening after a record 43-day shutdown.
Analysts said bitcoin continues to behave like a risk-on asset rather than a safe haven. “Bitcoin and crypto have generally enjoyed a positive correlation with good times in equities, so it has not become an asset of alternative value to hedge against fear in other sectors,” said Juan Perez, director of trading at Monex USA. “If there is no enthusiasm toward risk-taking, it seems like that also translates into hesitation with bitcoin and the like.”
Rate-cut expectations, once near certain, have fallen sharply. Markets now assign roughly a 40% probability to a December cut — down from about 90% earlier this month — after a series of Federal Reserve officials signaled they prefer waiting before easing. Kansas City Fed President Jeffrey Schmid, a voting member of the Federal Open Market Committee, said Friday that inflation risks remain “too hot,” reinforcing the shift in sentiment.
In early afternoon trading on Sunday, bitcoin was last down 2.3% at $96,564 after briefly touching $95,885.33, its lowest since May 7. Ether, the second-largest cryptocurrency, was flat on the day at $3,175.22 after falling to a 10-day low.
Dave Rosenberg, founder of Rosenberg Research, said bitcoin had entered “official bear market terrain,” having dropped more than 20% in just over a month. He highlighted significant outflows from cryptocurrency exchange-traded funds, with redemptions totaling $870 million on Thursday alone.
Since its October 7 peak, the global crypto market has shed more than $1 trillion in value — a 24% decline.
Long-term holders are also contributing to selling pressure. According to Glassnode, profit-taking among seasoned bitcoin investors has accelerated, while CryptoQuant reported that long-term holders have sold 815,000 bitcoin over the past 30 days, the highest level since January 2024.
Analysts said the overall outlook remains bearish as macroeconomic uncertainty persists and market liquidity thins.
