Bitcoin and the broader cryptocurrency market are struggling and may record heavy losses this week as investors retreat from riskier, more speculative trading. Bitcoin plunged to $96,000 on Friday, extending a slide below the key $100,000 mark the previous day. The largest cryptocurrency has fallen about 7% this week and is currently trading more than 20% below its all-time high of more than $126,000 hit on October 6.
Ethereum, the second-largest cryptocurrency, has fallen nearly 8% this week to around $3,200.
Cryptocurrency stocks have also been hit hard, with Bitcoin reserve company Strategy falling nearly 15% this week. The company’s market capitalization briefly fell below the value of its Bitcoin holdings on Thursday, raising questions about the sustainability of such Bitcoin reserve companies.
Investors are worried about dwindling expectations for a rate cut by the Federal Reserve in December, at a time when the U.S. economy is facing a slowdown.
Institutional and retail investors have been liquidating positions, adding to downward pressure on cryptocurrency prices. Investors pulled about $868 million from 11 U.S. spot Bitcoin exchange-traded funds (ETFs) on Thursday, marking the worst day for such funds since late February 2025, according to data from JPMorgan Chase and Bloomberg.
Meanwhile, early holders of Bitcoin have been cashing out, adding to downward pressure across the market. According to data provider CryptoQuant, long-term Bitcoin holders have sold a total of about 815,000 Bitcoins in the past 30 days, which is the highest level since January 2024.
Despite the market downturn, some investors maintain a bullish outlook on Bitcoin, which has experienced a sharp rally since crypto-friendly governments came to power.
Eric., co-founder and chief strategy officer of American Bitcoin, a Bitcoin mining company. Trump said he views the current sell-off as an opportunity for his company to buy more Bitcoin.
"I think volatility is your friend," the president's son said in an interview. He also said: "Anyone who can't accept the volatility of cryptocurrencies should probably get out of this market. This is actually a great opportunity for us to buy."