Bitcoin hits six-month low

Bitcoin fell toward $96,000 on Friday, hitting a six-month low as a wave of risk aversion swept through global markets and expectations for a December Federal Reserve rate cut diminished sharply.

The decline came amid a broader selloff in risk-sensitive assets, with tech stocks driving a global retreat as investors questioned whether AI-related valuations have become excessively stretched.

Even the reopening of the US government, which ended the longest shutdown in history, did little to boost sentiment, as market participants remained focused on monetary-policy uncertainty.

Caution deepened after mixed signals from Fed officials muddied the outlook for policy easing. While some policymakers emphasized the need for patience, others hinted that further economic softening could warrant action—leaving traders skeptical about a December move.

Markets now price in only a 51% chance of a rate cut, a dramatic reversal from expectations above 95% just one month ago, reflecting a rapid shift toward a more hawkish stance.

Across the cryptocurrency market, conditions remained fragile. Digital assets continued to struggle following October’s flash crash, which triggered record levels of liquidations and forced deleveraging across major exchanges. The lingering aftershocks underscore a persistent pullback in risk appetite, with speculative interest notably weakened.

Adding to pressure on Bitcoin, reports surfaced that Japanese authorities are considering new regulatory measures targeting cryptocurrency treasury-management firms, a move that could tighten compliance requirements and limit capital flows. The potential rules stirred renewed concerns about a broader regulatory clampdown in Asia, further weighing on sentiment in an already vulnerable market.