Bitcoin, the world’s largest cryptocurrency by market value, was down by 1.59% at $93,684 at 4:21 p.m. ET (3121 WAT) on Sunday.

It later bounced back to $95, 050 at 7:29 AM WAT on Monday.

Bitcoin crashed to its lowest level in six months on Friday, as a broad sell-off in risk assets deepened amid fading hopes that the Federal Reserve will cut U.S. interest rates at its upcoming policy meeting.

Markets now price in about a 40% chance of a December rate cut, down from about 90% earlier this month and just over 60% earlier last week.

Selling in U.S. equities, however, eased slightly in the afternoon ahead of the weekend, but investors stayed on edge as they braced for a slew of economic data next week following the government’s reopening after a record 43-day shutdown, Reuters reports.

Risky assets have come under pressure in recent days as expectations of a Fed rate cut next month have diminished, with a growing number of policymakers signaling an inclination to hold off on easing.

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Since peaking on October 7, the crypto market capitalisation has fallen by more than $1 trillion, or 24%.

The backdrop for bitcoin remains bearish, analysts said.

Investors in recent days have worried the Federal Reserve may hold off on a December rate cut, and that A.I.-related stocks have become too pricey.

Long-term bitcoin holders have accelerated profit-taking, according to crypto research firm Glassnode. Those long-term bitcoin holders have sold 815,000 bitcoin over the past 30 days, a record high since January 2024, according to CryptoQuant, another digital asset research firm.