Bitcoin price today: Drops below $94k following hawkish signals from the Fed

Bitcoin declined on Thursday, continuing its sharp losses as investor sentiment was shaken by hawkish signals from the Federal Reserve and concerns over potential coin sales by the U.S. government.

The leading cryptocurrency largely erased its New Year’s rebound this week, mirroring broader declines in risk-sensitive assets as traders adjusted expectations for a slower pace of rate cuts in 2025.

Overall, the cryptocurrency market also experienced pullbacks, but Thursday’s losses were particularly pronounced for Bitcoin. This came after reports indicated that the Department of Justice had secured court approval to sell coins seized from the Silk Road marketplace.

Bitcoin dropped 2.1%, reaching $94,471.1 by 00:56 ET (05:56 GMT), having earlier dipped to $93,323.1 during the session.

The broader cryptocurrency market saw a decline alongside Bitcoin as investor risk appetite weakened due to hawkish signals from the Federal Reserve.

The minutes from the Fed’s December meeting emphasized its intention to slow down the pace of interest rate cuts in 2025, driven by the U.S. economy’s resilience and ongoing concerns about persistent inflation.

Policymakers also voiced concerns about inflation being supported by the expansionary and protectionist policies under the Trump administration, which could result in higher rates being sustained for a longer period.

Rising interest rates typically exert negative pressure on speculative assets like cryptocurrencies, as they reduce investor appetite for riskier assets.

Among altcoins, Ether stabilized at $3,328.41 after experiencing significant losses earlier in the week. XRP saw a 2.2% increase to $2.3478, partially recovering from recent declines.