The price of Bitcoin fell below 100,000 euros on Friday for the first time in two weeks. The drop comes a week after the largest cryptocurrency reached a record value of over 103,000 euros. Other popular cryptocurrencies also declined.
The falling prices are likely a result of diminishing hopes for U.S. interest rate cuts. When interest rates are low, people are more inclined to invest their money instead of saving it.
But due to a favorable report on employment in the United States, investors believe that the chance of an interest rate cut has become smaller. The American central bank will make a decision on interest rates next week.
Last week, Bitcoin reached a record high due to optimism about the crypto-friendly policies of U.S. President Donald Trump. There was also enthusiasm about new opportunities to invest in digital currencies.
But the largest cryptocurrency fell about 3 percent to over 98,000 euros on Friday morning, the lowest level since July 11. Ethereum, the second-largest digital currency, also fell about 3 percent in value, and XRP lost more than 5 percent.