Bitcoin, the largest cryptocurrency, declined on Thursday, November 20, reaching a low of $92,000 amid uncertainty over a December rate cut by the US Federal Reserve. Bitcoin prices dropped 0.41% to $92,140.39 at 6:15 am, according to CoinMarketCap data.
Bitcoin’s market capitalisation stood at $1.83 trillion, while trading volume in the last 24 hours stood at $80.08 billion. Meanwhile, Ether, the second-largest token, declined by 0.28% to $3,042 on Thursday.
Why is Bitcoin falling?
The likelihood of a December Fed rate cut fell to 32%, prompting a widespread risk-off mood after Fed minutes suggested caution about inflation and the labour market, according to CoinMarketCap.
This revaluation affected risk assets, with crypto markets losing $700B since early November. Higher interest rates decrease Bitcoin’s attractiveness as a non-yielding asset.
Meanwhile, Spot Bitcoin ETFs experienced 5 consecutive days of net outflows ($2.26B total), resulting in sustained selling pressure in the crypto token.
Bitcoin has recently faced pressure, falling below $90,000 for the first time in seven months on Tuesday, November 18. The highly volatile cryptocurrency has erased its 2025 gains and is now nearly 30% lower than its October peak of over $126,000. During afternoon trading in Asia on Tuesday, the price declined by 2% to $89,953.
Ether has been under sustained pressure, falling nearly 40% from its August peak above $4,955, and trading 1% lower at $2,997 on Tuesday.
About The Author
