Bitcoin faced a downturn on Friday, ending its three-week streak of gains as rising yields and economic uncertainty dampened investor appetite for cryptocurrencies. The digital asset dropped 0.6% to $82,428.7 by 02:08 ET (06:08 GMT), putting it on track for a weekly loss of about 2.8%. Broader crypto markets also declined, with major altcoins underperforming Bitcoin for the week as profit-taking set in after a strong third-quarter performance.
Investors shifted their focus towards artificial intelligence stocks, driving Wall Street to record highs while crypto markets lost appeal. The growing likelihood of a Federal Reserve interest rate hike before year-end, coupled with sticky inflation, added to the pressure on risk-driven assets like Bitcoin. Additionally, spot Bitcoin ETFs recorded their first weekly outflow in four weeks, with over $700 million in capital exiting the market, according to data from SoSoValue.
Altcoins also suffered losses, with Ethereum falling 2.7% to $2,498.21, marking a 7% weekly decline. Solana dropped 0.5% and faced a nearly 6% weekly loss, while Dogecoin declined 3.4%, losing 5.6% for the week. Among memecoins, Shiba Inu fell 2.6%, while Bonk rose 0.3%. Despite some regulatory favor and buying action from Strategy Inc, Bitcoin's decline persisted, highlighting the broader market's sensitivity to economic shifts and yield pressures.