Slight setback for Bitcoin. The price of the world's most expensive cryptocurrency has fallen nearly 15% from last Tuesday's record high of more than $108,000. Bitcoin fell to a price below $93,000 on Friday at the start of the session but it very quickly recovered part of its losses by settling around $98,000 this Saturday morning.
The fall reverberated across the entire cryptocurrency market. At the same time, Ether, the second-largest cryptocurrency, fell by around 1%, Dogecoin by 4% and cryptocurrency exchange Coinbase by almost 2%.
If this fall in Bitcoin can be explained in part because sellers were more numerous than buyers, it is mainly due to the announcement Wednesday evening from the Federal Reserve (Fed), which indicated that it expected unless there are interest rate cuts in 2025.
Typically, low interest rates stimulate economic activity and boost corporate profits and help increase the value of high-growth assets like stocks and cryptocurrencies. Cryptocurrencies being risky assets, on the contrary, they generally react poorly to periods of high or increasing interest rates, which limit the diversification of investors preferring to hold cash.
These Fed forecasts therefore sent stocks tumbling within minutes and helped push Bitcoin to its lowest level in weeks. If this drop is the first stop since the election of Donald Trump, its price has still increased by around 36% since the day of the election.
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