The post Bitcoin Falls Below $104,000-Here’s Why appeared com. Topline Bitcoin prices dropped below $104,000 on Tuesday, headlining a broader decline for the crypto market over the last month as investors appeared to pull away from riskier assets while the Federal Reserve cautiously approaches interest rate cuts. The leading cryptocurrency has pared back historical gains in recent weeks. Getty Images Key Facts The price of bitcoin decreased 3. 78% over the last day to around $103,970, matching a low reached last month and nearing levels not seen since June, when the cryptocurrency last priced under $100,000. Bitcoin (down 10. 3%) has led a broader decline for crypto prices over the last seven days: Ethereum prices have dropped 16%, XRP fell 15. 2%, BNB is down 17. 5%, Solana has fallen 20. 5% and the meme token dogecoin has cut 20. 1%. Bitcoin topped out at a new record high above $126,000 on Oct. 6, before prices declined nearly 11% in the lead-up to the Federal Reserve’s decision to cut interest rates by a further quarter-point last week, though Fed Chair Jerome Powell suggested an additional reduction to rates isn’t guaranteed in December. Higher cryptocurrency prices tend to coincide with the Fed opting for lower interest rates, as the price of bitcoin surged during the pandemic as rates fell, rising from $5,000 in March 2020 to around $69,000 by November 2021, and when the Fed opted for rate hikes in 2018, the value of bitcoin fell from around $20,000 to roughly $3,000. Fed Governor Lisa Cook said Monday she was undecided on a rate cut for December, and it’s unclear whether other central bank officials would favor holding interest rates at their current range, other than Kansas City Fed President Jeffrey Schmid, who voted last week to not lower rates at all. Surprising Fact Bitcoin prices decreased 3. 7% in October, the worst performance by the cryptocurrency.
