Bitcoin price today: pares gains after topping $97K heading for 2nd weekly loss

Bitcoin remained flat on Friday amid soft year-end trading volumes, while investors stayed cautious about the prospect of cryptocurrencies after the Federal Reserve turned hawkish last week.

Bitcoin fell 1.7% to $94,488.7 by 3:55 p.m. ET (20:55 GMT). The popular crypto had topped $97,000 earlier in the day.

Bitcoin pulled back on Thursday as markets seemingly responded to inaccurate chart data from TradingView.

The cryptocurrency dipped toward $95,000 after social media users flagged an anomaly on TradingView’s Bitcoin dominance chart, which incorrectly showed Bitcoin’s share of the total crypto market cap dropping to 0%.

Although the error was later corrected, it reportedly triggered sudden trading reactions that pushed the prices lower.

According to CoinGlass data, roughly $33 million in Bitcoin long positions were liquidated within four hours. Bitcoin on track for second consecutive weekly fall

Bitcoin was set to fall for the second consecutive week as a rally induced by Donald Trump’s presidential election victory lost steam after the Fed meeting hindered.

The rally had pushed prices to an all-time high of $108,244.9 last week, after which prices fell due to profit-taking amid macroeconomic pressures induced by the Fed rate outlook.

The central bank lowered rates by 25 basis points but indicated only two rate cuts for the upcoming year, compared with previous expectations for four cuts.

This shift led investors to reassess their positions in speculative assets like Bitcoin, contributing to its price decline. Crypto price today: altcoins see limited gains

Other cryptocurrencies rose slightly on Friday but were set for weekly losses as demand for speculative assets remained subdued after the hawkish Fed spurred liquidity concerns.

World no.2 crypto Ether  was 0.4% higher at $3,344.52, after falling nearly 5% in the previous day.

World no.3 crypto XRP  rose 0.7% $2.1677 and was set to fall nearly 4% the week.

Solana fell 1.4% and Polygon  climbed 1%, while Cardano  rose 3.3% to $0.8925. Among meme tokens, Dogecoin  added 0.40%.

Ayushman Ojha contributed to this report.

Source: Investing.com