Bitcoin is down dramatically, what is going on?

(Dan Tri) - Bitcoin price has just fallen to its lowest level since April, amid investors massively reducing risks and concerns that the US Federal Reserve (Fed) may not lower interest rates in December.

Bitcoin has just plunged and lost the $82,000/BTC mark. The sharp decline appeared in the context of investors massively leaving risky assets, including cryptocurrencies, to wait for clearer policy signals from the Fed.

Market pressure intensified after the US Department of Labor released its September non- farm payrolls report, which was delayed due to the government shutdown. The report showed that the US added 119,000 new jobs, double the previous forecast of 50,000. This data immediately weakened expectations that the Fed would cut interest rates at its December meeting.

The US Labor Department said it would not release the October report but combine it with November on December 16 - after the Fed meeting. This makes the newly released data the most important basis for the upcoming decision.

Digital assets are often viewed by investors as a measure of risk appetite, so the sharp decline suggests that market sentiment has turned more cautious as once-hot artificial intelligence stocks have slumped.

Bitcoin price continues to plummet (Photo: Binance).

According to data from market tracker CoinGecko, $1.2 trillion in total cryptocurrency market capitalization has "evaporated" in the past six weeks.

Bitcoin’s decline has been swift and sharp after a spectacular rally this year that pushed the cryptocurrency to a record high above $120,000 in October, supported by favorable changes in digital asset regulation globally.

Analysts say the market is still reeling from last month's record crash. Bitcoin has also erased all of its year-to-date gains and is down 8% this year.

In its recently released weekly report, digital asset research firm CryptoQuant said the bitcoin market is in its worst state since the current bull cycle began in January 2023. Experts say that most of the wave of this cycle has passed.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-giam-the-tham-dieu-gi-dang-xay-ra-20251121182648708.htm