- Major cryptocurrencies declined following Federal Reserve comments and ETF outflows.
- Bitcoin dropped 1.6% to $109,523.97, with Ethereum and BNB also showing losses.
- Spot Bitcoin ETFs recorded nearly $959 million in outflows over two days.
- The Federal Reserve reduced rates but signaled no further cuts are likely this year.
- Strategy maintained a year-end Bitcoin Price target of $150,000.
Bitcoin, Ethereum, and other leading digital assets saw sharp declines on Friday, as investors responded to comments from Federal Reserve Chair Jerome Powell and significant outflows from cryptocurrency exchange-traded funds (ETFs). Bitcoin was reported down 1.6% at $109,523.97, while Ethereum fell 2.9% to $3,825.17 and BNB slipped 2% to $1,095.67.
According to data from SoSoValue, spot Bitcoin ETFs experienced combined outflows of nearly $959 million over the last two days. Ethereum ETFs also saw outflows totaling $265 million in the same period. Other tokens, including XRP and Solana, posted losses of 4.3% and 5.4%, respectively.
The Federal Reserve announced a 25 basis point reduction in its benchmark interest rate on Wednesday. However, Jerome Powell indicated that another rate cut is unlikely before the end of the year, stating in a press briefing, “A further reduction in the policy rate at the December meeting is not a foregone conclusion — far from it.” He added that there was a growing sentiment to wait before making additional policy moves.
Bitcoin prices, which were above $114,000 earlier in the month, are now on track for their first monthly decline since 2018. Investor sentiment remains mixed, with observations suggesting there is widespread selling among individual and institutional holders alike.
Strategy, led by Michael Saylor, reiterated its forecast for Bitcoin to reach $150,000 by year-end. The company expects to achieve $80 per share in earnings for 2025 and $34 billion in operating income, with the outlook based on Bitcoin’s potential to be treated as a major capital asset. Chief Executive Phong Le commented on the possibility of banks and mortgage lenders using Bitcoin as collateral, stating, “Over time, our hope is [that] if Bitcoin was to be treated as a true capital on our balance sheet, that we would be considered an investment-grade rated company.”
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