Bitcoin prices weakened further on Friday, mirroring a global retreat in risk assets. The world’s largest cryptocurrency dropped 0.8% to $102,294.3 by 05:23 GMT, marking its second consecutive week of losses and its fourth weekly decline in five weeks.
The downturn deepened Bitcoin’s entry into bear-market territory, with prices now down over 20% from October’s record highs. Analysts attribute the slide to renewed investor caution as global tech shares faced heavy selling, leading to a broader risk-off sentiment.
Across markets, concerns about overstretched valuations in major technology stocks have triggered sharp declines, spilling over into crypto assets. Investors, wary of volatile markets, have been reducing exposure to speculative sectors, including digital currencies.
“Bitcoin remains highly correlated to tech sentiment,” analysts at Coin Metrics noted. “As long as high-growth equities face pressure, crypto will struggle to find sustained upside momentum.”
Economic Uncertainty Adds to Pressure
Broader economic headwinds have amplified the sell-off. The ongoing U.S. government shutdown, now deep into its second month, has delayed key economic data releases, clouding the outlook for monetary policy and investor confidence.
Private payroll data released Thursday revealed a spike in layoffs during October, fueling expectations that the Federal Reserve may cut rates in December. While lower rates often support risk assets, traders remain cautious amid heightened market volatility.
Meanwhile, U.S. President Donald Trump reaffirmed his administration’s commitment to digital assets, stating that “the U.S. will become the Bitcoin superpower of the world.” His administration recently introduced measures such as a national crypto reserve and a stablecoin regulatory framework, though no plans for direct government crypto purchases were announced.
Key factors weighing on Bitcoin:
- Tech stock correction hitting risk assets
- Rising U.S. layoffs, economic slowdown fears
- Uncertainty from the prolonged U.S. shutdown
Altcoins Follow Bitcoin’s Downtrend
The broader cryptocurrency market also weakened, reflecting the same risk-averse mood. Ether (ETH), the second-largest crypto, fell 0.9% to $3,357, posting a 13% weekly decline—its lowest level since July.
Other major altcoins showed similar patterns:
- XRP: –4.1%, down 11% for the week
- BNB: +1.9% on the day, but still –12% weekly
- Solana: –0.8%
- Cardano: +2% rebound
Among meme tokens, Dogecoin gained 1.5%, while $TRUMP token fell 5.5%.
Despite periodic rebounds, crypto markets remain fragile, with traders increasingly cautious ahead of key economic updates and Federal Reserve signals later this month.