According to the Zhitong Finance APP, Bitcoin has recorded its first seven-day decline in eight weeks, as the Federal Reserve's hawkish signals prompted investors to sell this asset, which has doubled this year.
On Friday, Bitcoin fell by as much as 5.3% to $92,149, after reaching a historic high of just over $108,000 earlier in the week. As of Sunday, Bitcoin was down about 5%, trading at approximately $97,400 in the New York market. The decline in Bitcoin has had a more significant impact on smaller tokens like Ethereum and Dogecoin, despite the U.S. stock market performing well this week.
According to data compiled by Bloomberg, U.S. exchange-traded funds (ETFs) directly investing in Bitcoin saw a record outflow of $680 million on Thursday, ending a 15-day streak of inflows, marking a clear shift in market sentiment.
This increase in volatility stems from a rebound in crypto assets following Trump's victory in the U.S. presidential election on November 5. However, QCP Capital noted that market sentiment has become &#34;overly optimistic,&#34; making digital assets more sensitive to changes in the Federal Reserve's stance. The Federal Reserve is intensifying efforts to bring inflation back to target levels.
With Trump set to take office and threatening to impose tariffs on U.S. allies and adversaries, uncertainty in the crypto market seems likely to persist during the holiday season. Meanwhile, the Federal Reserve may slow the pace of its easing policies, shifting market focus to the speed at which traditional financial institutions accept this asset class.
Hani Abuagla, senior market analyst at XTB, wrote in a report on Friday: &#34;The interplay between monetary policy, institutional adoption, and political dynamics suggests that Bitcoin will remain sensitive to macroeconomic and crypto market-specific catalysts until 2025.&#34;
The number of open contracts for Bitcoin futures on the Chicago Mercantile Exchange approached historical highs on Tuesday but then retreated.
&#34;From a technical perspective, caution is warranted in the short term,&#34; noted Chris Weston, head of research at Pepperstone Group, in a report. &#34;This does not mean that prices are about to collapse, but it is clear that upward momentum has weakened, and buyers are losing control of the market.&#34;

Bitcoin recorded its first seven-day decline in eight weeks, as hawkish signals from the Federal Reserve prompted investors to sell. Bitcoin briefly fell by 5.3% to $92,149, with recent trading prices around $97,400. Market sentiment has shifted, with record outflows from ETFs. Analysts point out that Bitcoin is sensitive to macroeconomic factors and catalysts in the cryptocurrency market, and caution is advised

- Bitcoin has recorded its first seven-day decline in eight weeks, dropping 5.3% to $92,149, influenced by the Federal Reserve's hawkish signals prompting investor sell-offs.  
- The decline has significantly impacted smaller tokens like Ethereum and Dogecoin, despite a strong performance in the U.S. stock market, with a record $680 million outflow from Bitcoin ETFs marking a shift in market sentiment.  
- Analysts suggest that Bitcoin will remain sensitive to macroeconomic factors and political dynamics, with caution advised in the short term as upward momentum appears to be weakening.

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Knocked down by the Federal Reserve? Bitcoin records its first seven-day decline in eight weeks