Bitcoin began to fall after reaching an all-time high. Traders sell cryptocurrency while looking to signals from the Federal Reserve System.
Bloomberg writes that the cryptocurrency initially fell 5% to $92,600 after setting an all-time high just above $108,000 earlier in the week.
A group of US exchange-traded funds that invest directly in Bitcoin, after 15 days of continuous inflows, recorded a record outflow of $680 million.
Uncertainty in cryptocurrency markets looks set to continue beyond the holidays as Donald Trump prepares to take office, threatening US allies and adversaries alike with tariffs.
“The relationship between monetary policy, institutional adoption of cryptocurrencies, and political developments suggest that Bitcoin will remain sensitive to macro and crypto-specific catalysts through 2025,” said Hani Abuagla, senior market analyst XTB.
Open Interest on Bitcoin Futures on CME Group Inc. approached a record high but then declined.
“From a technical point of view, caution should be exercised in the short term,” said Chris Weston, head of research at Pepperstone Group. “This does not mean that we are expecting a price collapse in the near future, but the momentum has clearly faded, and buyers have lost dominance and control over the situation.”