Bitcoin (COIN:BTCUSD) extended its decline on Friday, slipping below the psychologically important $100,000 threshold as fading expectations of a Federal Reserve rate cut in December weighed heavily on risk markets.

The cryptocurrency was also heading for its third weekly loss in a row, with institutional demand continuing to retreat.

By 00:00 ET, Bitcoin was down 4.2% at $97,795.5—its weakest level since May—after briefly touching an intraday low of $96,866.1.

Fed uncertainty intensifies as markets scale back December rate-cut bets

Traders sharply reduced their expectations for a December rate cut this week amid growing questions about the health of the U.S. economy.

The nearly 43-day U.S. government shutdown, which finally ended on Wednesday, created a major disruption in economic reporting. Officials have already warned that October’s inflation and employment data may not be released at all, leaving the Federal Reserve with a significant information gap heading into its December meeting.

This lack of visibility has led markets to conclude that the central bank is more likely to hold rates steady. CME’s FedWatch tool now shows the probability of a 25-bps cut at just 45.4%, down from 63.8% a week earlier.

The overall uncertainty pushed investors away from speculative trades, putting additional pressure on cryptocurrencies.

Weak institutional flows push Bitcoin toward a third week of losses

Bitcoin’s drop this week was amplified by declining institutional participation. Data from SoSoValue showed that U.S. spot Bitcoin ETFs saw almost $897 million in outflows on Thursday, marking their third straight week of withdrawals.

Major institutional buyers have been reluctant to re-enter the market, especially after Bitcoin spent much of October and early November stuck in a narrow consolidation range.

Altcoins fall alongside Bitcoin

Losses extended across the crypto market. Ether dropped 9.3% to $3,161.68 and was down more than 7% for the week. BNB slipped 5.4%, XRP fell 8%, and Solana and Cardano were both lower by roughly 8.5% to 9%.

Among meme tokens, Dogecoin and $TRUMP each fell more than 7%.

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