Bitcoin Slips to $100.6K as Fed Caution Deepens Market Losses; AI Tokens Defy the Downtrend
Bitcoin extended its weekly losses on Friday, dropping to $100,600 amid renewed caution from the Federal Reserve. The broader crypto market followed suit, with Ether and most altcoins under pressure, while AI-linked tokens continued to outperform.
The downturn capped a negative week for digital assets as traders reacted to hawkish signals from Fed officials suggesting a potential slowdown in rate cuts. The comments lifted the U.S. dollar and weighed on risk assets, including cryptocurrencies.
Bitcoin (BTC) has fallen roughly 18% over the past month, aligning with broader weakness across the market. The CoinDesk 5 Index (CD5) — which tracks the largest, most active tokens — and the CoinDesk 20 Index (CD20) both slipped about 3% in the past 24 hours.
Ether (ETH) hovered near $3,270, failing to hold support around $3,400. Meanwhile, altcoins outside the AI sector extended their slide, dragging the Altcoin Season Index down to 22/100, its lowest reading in over 90 days.
Despite the broader slump, AI-focused tokens have emerged as rare winners, buoyed by renewed investor interest in the intersection of artificial intelligence and blockchain technology.
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