Investing.com– Bitcoin extended its decline Friday amid low year-end trading volumes, while investors remained cautious about the prospects for cryptocurrencies after the Federal Reserve turned hawkish last week .
fell 2.1% to $96,403.7 at 1:30 a.m. ET (06:30 GMT).
Bitcoin fell on Thursday as markets appeared to react to inaccurate chart data from TradingView.
The cryptocurrency fell as low as $95,000 after social media users reported an anomaly on TradingView’s Bitcoin dominance chart, which incorrectly showed Bitcoin’s share of the crypto’s total market cap falling at 0%.
Although the error was later corrected, it reportedly triggered sudden trade reactions that drove prices down.
According to CoinGlass data, approximately $33 million worth of long Bitcoin positions were liquidated within four hours.
Bitcoin on track for second consecutive weekly decline
Bitcoin was poised to fall for the second week in a row as the rally driven by Donald Trump’s presidential election victory fizzled after the Fed meeting was hampered.
The rise pushed prices to a record high of $108,244.9 last week, after which prices fell due to profit-taking amid macroeconomic pressures induced by the Fed’s rate outlook.
The central bank cut rates by 25 basis points, but indicated only two rate cuts for the coming year, compared to four previous forecasts.
This change has led investors to reassess their positions in speculative assets like Bitcoin, thereby contributing to its price decline.
Crypto Price Today: Most Altcoins Falling Due to Liquidity Concerns
Other cryptocurrencies have also fallen following Bitcoin prices and are expected to suffer weekly losses. Demand for speculative assets remained subdued after the Fed’s hawkish policy sparked liquidity concerns.
The world’s No. 2 crypto was down 1.5% at $3,3379.39, after falling almost 5% the day before.
The world’s No. 3 crypto fell 2.8% to $2.2187 and is expected to fall nearly 4% for the week.
fell 1.7% and lost 1%, while falling more than 8% to $0.8965. Among meme tokens, fell 2.6%.
