Bitcoin Rises From Lows But Faces 16% Weekly Loss

Bitcoin Rebounds From 16-Month Low Amid Market Pressure

Bitcoin experienced a partial recovery, rising 5% to $66,144.7 after reaching a 16-month low. Despite the brief rally, the cryptocurrency is on track for a third consecutive week of losses, facing a decline of nearly 16% as broader market uncertainty prevails.

Market Overview: Fed Policy and Risk-Off Mood

The cryptocurrency market has been significantly impacted by a widespread exodus from speculative assets. This sell-off intensified due to uncertainty over U.S. monetary policy, especially following the nomination of Kevin Warsh as a potential Federal Reserve chairman, who is perceived as having a less dovish stance.

Impact on Corporate Holders and Altcoins

Major corporate holder MicroStrategy Inc. reported a substantially wider fourth-quarter loss of $12.4 billion, primarily due to the depreciation of its Bitcoin assets. Other major digital currencies also recorded steep weekly declines, with Ether falling approximately 22% and other altcoins like XRP and Solana facing similar pressures.

Summary and Outlook

The market continues to face significant pressure from macroeconomic factors. Investors are closely watching for signals from the Federal Reserve, as monetary policy decisions are expected to heavily influence risk assets, including the crypto sector, in the near future.

FAQ

Q: Why is Bitcoin's price down for the week?
A: The decline is mainly due to a broad risk-off sentiment in global markets, fueled by uncertainty surrounding future U.S. Federal Reserve monetary policy.

Q: How much has Bitcoin's value fallen this week?
A: Bitcoin is headed for a weekly loss of nearly 16%, marking its third straight week of declines.

Source: Investing.com