Bitcoin dropped to $114,762, the lowest since July 11, alongside broader risk assets as investor hopes for US interest rate cuts dwindled. The cryptocurrency reached an all-time high of $123,205 earlier in the month but has seen momentum slow as traders become more cautious. Strong US jobs data affected Fed cut prospects, leading to a market correction viewed as a healthy adjustment. The total cryptocurrency market capitalization peaked at over $4 trillion, with some expecting further consolidation in the market.
Bitcoin's recent decline followed diminishing hopes for US interest rate cuts, impacting investor enthusiasm and causing the cryptocurrency to drop as low as $114,762.
Despite reaching an all-time high of $123,205 earlier this month, the momentum in the crypto market has cooled, leading traders to approach the market with caution.
Experts suggest that the ongoing correction in the crypto market is a healthy response to previous highs, asserting that a drop to $3.4 trillion would merely represent profit-taking.
The bearish sentiment is reflected in the derivatives market, where a speculator invested $5 million in Bitcoin put options, indicating expectations of further consolidation below the resistance at $125,000.
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