Bitcoin plunged to new multi-month lows on Friday, falling below $81,000 — its weakest level since April — as the cryptocurrency market reels from mounting global uncertainty and waning investor appetite for riskier assets.
The world’s largest cryptocurrency has now dropped more than one-third of its value since reaching a record high of about $125,000 on Oct. 6, placing it on track for a fourth straight week of losses.
Crypto Market in Sell-Off Mode
Bitcoin wasn’t alone. Major altcoins, including Ether (ETH) and Solana (SOL), also tumbled sharply, along with ETFs and crypto-linked stocks such as:
- MicroStrategy (MSTR) — the largest corporate Bitcoin holder
- Mara Holdings (MARA) — a major crypto mining firm
Bitcoin has logged only two positive trading days since Nov. 10, when it hovered near $106,000.
What’s Driving the Decline?
Analysts point to several overlapping factors:
1. Fears of a Growing AI Bubble
Volatility in U.S. stock markets has surged amid debate over whether artificial intelligence investments are overheating, dragging crypto down with broader risk sentiment.
2. Uncertainty Over Federal Reserve Rate Cuts
A delayed September jobs report offered mixed signals:
- More jobs added than expected — normally a sign of economic strength
- Unemployment rate also rose — contradicting expectations
The conflicting data has deepened speculation over whether the Fed will cut interest rates at its upcoming meeting, putting pressure on risk assets like crypto.
3. Flight to Safer Assets
With uncertainty rising, investors appear to be shifting into safer havens such as:
- U.S. Treasury bonds
- Gold
- Cash and money-market instruments
Why This Matters for Investors
Bitcoin’s sharp decline underscores a classic market dynamic:
When confidence is high, investors embrace speculative assets; when uncertainty grows, they retreat.
Analysts warn that until interest rate direction becomes clearer and stock market volatility eases, cryptocurrencies may remain under pressure.