Crypto Crash: Bitcoin Drops Below $85, 000

The crypto market is in a slump. Bitcoin, the most well-known cryptocurrency, has dropped below $85, 000. This is a big deal because just a few months ago, it was worth over $126, 000. That's a loss of about 33% in just eight weeks. This isn't just happening to Bitcoin. Other companies related to crypto are also feeling the heat. For example, Coinbase, a popular platform for trading crypto, has seen its stock drop by 5. 1%. Robinhood, another trading platform, has also dropped by 5. 2%. Even companies that mine Bitcoin, like Riot Platforms, are not doing well. They've seen a drop of 5. 4%. There are a few reasons why this is happening. One is that investors are feeling unsure about the market. They're moving their money to safer investments like bonds and gold. Another reason is that the Federal Reserve, the central bank of the United States, has been talking about raising interest rates. This makes people nervous because it could mean that borrowing money will become more expensive. Some people are also selling their Bitcoin because they think it's a good time to make a profit. This is known as "profit-taking. " When a lot of people do this at the same time, it can cause the price of Bitcoin to drop. Another factor is that the rules around crypto are still not clear. This makes people unsure about investing in it. Some analysts think that this could be a temporary drop, but others think it could last longer. One way that people invest in Bitcoin is through something called a spot Bitcoin ETF. This is like a basket of Bitcoin that you can buy and sell on the stock market. But in November, people took out $3. 6 billion from these ETFs. This is the largest amount since these ETFs started trading in January 2024.