The price of Bitcoin has dropped to $92.7k, marking its first monthly decline since Aug
Bitcoin continued its decline on Tuesday, driven by low year-end trading volumes, and was on track for its first monthly drop since early August.
By 01:11 ET (06:11 GMT), Bitcoin had fallen 1.2% to $92,733.4.
The leading cryptocurrency had dropped to a one-month low of $91,522 on Monday before recovering as dip buyers stepped in.
Bitcoin recorded its second consecutive weekly decline last week, falling in five of the last six sessions.
The cryptocurrency was poised to lose nearly 4% in December, a month marked by the U.S. Federal Reserve’s hawkish stance.
In November, Bitcoin surged nearly 40% following Donald Trump’s presidential election victory, reaching an all-time high of $108,244.9. However, prices later fell as investors took profits amid macroeconomic pressures stemming from the Fed’s outlook on interest rates.
The Fed’s signal of only two rate cuts for the next year, down from the previously expected four, led investors to reassess their positions in riskier assets like Bitcoin, contributing to the decline.
Crypto stocks follow Bitcoin’s lead
On Monday, crypto-related stocks also followed Bitcoin’s downtrend.
MicroStrategy Incorporated (NASDAQ: MSTR) dropped 8.2%, Coinbase Global Inc (NASDAQ: COIN) fell 3.2%, Riot Platforms (NASDAQ: RIOT) ended 4.5% lower, and Marathon Digital Holdings Inc (NASDAQ: MARA) saw a 6.2% decrease.
Altcoins also experienced declines as the risk-off sentiment continued to affect demand for speculative assets.Ether, the world’s second-largest cryptocurrency, dropped 2.1% to $3,357.48. It was on course to decline nearly 10% this month, following a 47% surge in November.
XRP, the third-largest crypto, fell 2.6% to $2.0299.
Solana decreased by 1.8%, while Polygon dropped 4%, and Cardano fell 2.9%. Among meme coins, Dogecoin saw a loss of 2.7%.
