Investing.com — Bitcoin extended declines on Friday amid weak year-end trading volumes, while investors remained cautious about the cryptocurrency's prospects after the Federal Reserve turned hawkish last week.
It fell 2.1% to $96,403.7 by 01:30 ET (06:30 GMT).
Bitcoin fell on Thursday as markets appeared to respond to inaccurate chart data from TradingView.
The cryptocurrency fell toward $95,000 after social media users reported an anomaly in TradingView's Bitcoin dominance chart, which incorrectly showed Bitcoin's share of the total cryptocurrency market capitalization falling to 0%.
Although the error was later corrected, it sparked surprising trading reactions that pushed prices lower.
According to CoinGlass data, nearly $33 million worth of long Bitcoin positions were liquidated within four hours.
Bitcoin is on track for a second straight weekly decline
Bitcoin is set to fall for the second week in a row, as the rally triggered by Donald Trump's presidential election victory lost momentum after a Federal Reserve meeting was disrupted.
The rally pushed prices to an all-time high of $108,244.9 last week, after which prices fell on profit-taking amid macroeconomic pressures stemming from Fed rate expectations.
The central bank cut interest rates by 25 basis points, but indicated only two interest rate cuts for next year, compared to previous expectations of four cuts.
This shift has led investors to reevaluate their positions in speculative assets such as Bitcoin, which has contributed to a decline in their prices.
Cryptocurrency Price Today: Most altcoins decline amid liquidity concerns
Other cryptocurrencies also fell, tracking Bitcoin prices, and were poised to suffer weekly losses. Demand for speculative assets remains weak after a hawkish Federal Reserve raised concerns about liquidity.
The world's No. 2 cryptocurrency fell 1.5% to $33,379.39, after falling nearly 5% the previous day.
The No. 3 global cryptocurrency fell 2.8% to $2.2187 and is set to fall nearly 4% in the week.
It fell 1.7% and lost 1%, while it fell more than 8% to $0.8965. Among tokens, it fell by 2.6%.
