Bitcoin Price Drops as ETF Buyers Take Profits
Bitcoin's price dropped on Friday afternoon by over 3% in a 24-hour period, cooling off after its surge to $81,281 earlier this week. The cryptocurrency's value had skyrocketed due to massive investment from U.S. ETF buyers, with BlackRock's iShares Bitcoin Trust receiving the lion's share of the investment.
The price drop may be attributed to Federal Reserve Chair Kevin Warsh's speech on Friday, where he stated that he has 'more work to do' to fight inflation. Historically, when the Federal Reserve thinks inflation is too high, it means less chance of a rate cut, which typically benefits Bitcoin in a low-interest-rate environment.
Since August 17, investors have poured over $3 billion into U.S. Bitcoin ETFs, with last week being their best since October 2026 when Bitcoin hit an all-time high. The 'debasement trade' is leading investors to eye up Bitcoin again as a way to hedge against government spending and currency devaluation.