Bitcoin price today drops to a two-month low near $107,000. Bitcoin fell to its lowest level in two months below $108,000 on Monday, affected by large sell-offs from dormant "whale" wallets and a decline in ETF inflows, as traders assess bets on U.S. interest rate cuts ahead of the critical U.S. jobs report.
The largest cryptocurrency in the world traded down 0.8% at $107,994.6 as of 9:42 AM Saudi time.
It dropped to a low of $107,274.6 earlier in the session, the lowest level since early July.
Media reports showed that a long-dormant whale transferred large amounts of cryptocurrency to convert it to Ether, following a similar move earlier, indicating renewed profit-taking activity among major holders.
At the same time, U.S. spot Bitcoin funds continued to see outflows, sharply contrasting with strong inflows to Ethereum funds during August - highlighting a shift in investor preferences within the cryptocurrency markets.
The decline in Bitcoin also coincided with seasonal caution, as September historically sees declines, often referred to as "Red September" where traditional markets experience higher volatility during this period.
Traders are cautious ahead of the U.S. jobs report.
Traders see an 89% chance that the Federal Reserve will cut the benchmark interest rate by 25 basis points at the meeting on September 16-17, according to the CME FedWatch tool.
Expectations were bolstered after Federal Reserve Chairman Jerome Powell said at the Jackson Hole conference that policymakers are prepared to adjust policy if inflation continues to moderate and the labor market shows signs of slowing.
Data released on Friday showed that the core Personal Consumption Expenditures Price Index in the United States, the inflation measure preferred by the Federal Reserve, rose in line with expectations$BTC
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