Bitcoin Price Falls. Why the Crypto Is Having a Tough Week. — Barrons.com
2024-12-20
Category: None

By Elsa Ohlen
Bitcoin fell early Friday, now testing the psychologically important $100,000 level after hitting record highs earlier this week.
Bitcoin is down 4.9% in the last 24 hours to $96,631, according to CoinDesk data. It fell to just $95,633 in the late hours of Thursday, hurt by the Federal Reserve's Wednesday comments indicating fewer interest rate cuts in 2025 which has dampened the mood for the equity market as well.
The entire crypto sector has come under pressure in the wake of the stock market pullback, market strategist Louis Navellier noted. The S&P 500  fell 2.95% Wednesday — its worst one-day drop on a Fed decision day in almost 15 years.
"While the magnitude of bitcoin's decline is comparable to that of stocks, it is seen as a show of strength, as bitcoin often loses more," FxPro analyst Alex Kuptsikevich said.
It has been a strong year for both stocks and Bitcoin. The S&P 500 and the Nasdaq Composite are up 23% and 29%, respectively. Bitcoin has gained 130%, fueled by expectations that the incoming Trump administration will ease regulation on the crypto industry.
Bitcoin, however, is cyclical, Kuptsikevich noted. "As in past cycles, we saw some indecision before the psychologically important level at the end of the year. This time, it was the 100k mark and the subsequent acceleration after making the highs, fueled by both hype and liquidation of short positions," he said. "The repetition of such cyclicality sets the stage for further acceleration in price growth next year."
Write to Elsa Ohlen at elsa.ohlen@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.