Bitcoin Faces Steep Weekly Losses Amid Economic Uncertainty

Bitcoin's Steep Decline

Bitcoin experienced significant losses, marking its worst week since late September. Concerns over slower U.S. interest rate cuts and potential government Bitcoin sales have negatively impacted the cryptocurrency market. Traders have shifted focus toward safe havens like gold and the dollar due to rising economic uncertainty.

Government Actions Impacting Bitcoin

Bitcoin prices were further pressured by reports of the U.S. Department of Justice's plan to sell approximately $6.5 billion worth of Bitcoin confiscated from the Silk Road. This move has increased selling pressure on Bitcoin, overshadowing President Donald Trump's potential plans for a government Bitcoin strategic reserve. Despite his crypto-friendly stance, doubts remain about implementing such a reserve given congressional resistance to additional fiscal spending.

Market Sentiment and Broader Crypto Impact

The broader cryptocurrency market mirrored Bitcoin's downturn, with altcoins experiencing declines as well. This sentiment was exacerbated by upcoming nonfarm payrolls data, which could influence interest rate expectations. The Federal Reserve's recent meeting minutes highlighted fewer interest rate cuts in the future, adding to the uncertainty.

Altcoin Performance Amidst Economic Indicators

Ether, the world's second-largest cryptocurrency, fell 2% to $3,262.51. XRP dropped 2.3% to $2.2949, while Solana, Cardano, and Polygon experienced declines between 0.8% and 3%. Among meme tokens, DOGE/USD saw a 2.8% decrease. The anticipation of key economic indicators contributed to the risk-off sentiment in the market.

Overall, Bitcoin and the broader crypto market are facing significant challenges as economic uncertainty and government actions weigh heavily on investor sentiment.