Bitcoin steadied slightly Monday after touching its weakest level in more than six months, but pressure remained intense as investors recalibrated expectations for U.S. monetary policy. The world’s largest cryptocurrency last traded 0.7% lower at $95,101, recovering from an intraday low of $93,043, its softest reading since late April. The token’s nearly 7% drop last week marked a third consecutive weekly decline.
The selloff aligns with a sharp repricing in rate-cut expectations. Markets now assign only a 40% probability of a Federal Reserve cut at the Dec. 10–11 meeting—a steep pullback from the 90% odds priced in earlier this month. Fed officials have repeatedly signaled caution, with Boston Fed President Susan Collins warning she would be “hesitant to ease” without clearer signs of economic weakening.
- BTC last trade: $95,101, −0.7%
- Weekly performance: −7%, third straight decline
- Fed cut probability: ~40%, down from 90%
Crypto-linked ETFs continued to see outflows as traders unwound positions tied to earlier expectations of aggressive easing. The broader market also faced uncertainty caused by the U.S. government shutdown, which delayed key macro releases—including the September nonfarm payrolls report now scheduled for Thursday.
Japan Explores Major Crypto Reclassification
Regulatory shifts in Asia added a new dimension to market sentiment. Japan’s Financial Services Agency is reportedly considering classifying digital assets as financial products under the Financial Instruments and Exchange Act, Asahi reported. Roughly 105 cryptoassets, including Bitcoin and Ethereum, would fall under insider-trading rules, restricting trades based on non-public information.
The agency is also examining a proposal to introduce a flat 20% tax rate on crypto gains, aligning the sector with equity taxation and potentially reducing a top marginal burden that can exceed 55% under current rules.
These developments come as global regulators accelerate efforts to integrate crypto markets into traditional financial frameworks.
Altcoins Show Mixed Moves Despite Pressure
Altcoins mirrored Bitcoin’s volatility but displayed pockets of resilience. Ethereum dipped 0.3% to $3,188, while XRP held near $2.226. Other major tokens saw modest declines, with Solana down 0.5% and Cardano and Polygon dropping 1.8% each.
Among higher-beta names, Dogecoin fell 0.8%, and $TRUMP eased 0.7%, reflecting cautious sentiment across speculative corners of the market.
- ETH: $3,188, −0.3%
- XRP: $2.226, steady
- SOL: −0.5%
- ADA/MATIC: −1.8% each