Bitcoin hits six-month low as crypto market extends sharp decline

Bitcoin extended its slide on Friday, dropping below the $86,000 mark to its lowest level in more than six months. The world's largest cryptocurrency fell to $85,629.31, a price last seen in April, as investors trimmed exposure to risk assets amid renewed questions over the US interest-rate outlook.

The decline followed the release of stronger-than-expected US jobs data. The economy added 1,19,000 jobs in September, significantly higher than the 50,000 forecast by economists polled by Dow Jones.

The data prompted traders to reassess the likelihood of a Federal Reserve rate cut next month, pressuring speculative assets across global markets.

Bitcoin's retreat was mirrored across the broader crypto landscape. Ether slipped 0.96 per cent to $2,803.34, while XRP was down 1.05 per cent and continued to trade below $2.

The cryptocurrency's slide came despite strong earnings from Nvidia, whose results had initially buoyed tech sentiment.

Market observers noted that traders with significant exposure to AI-linked equities often overlap with bitcoin holders, creating a spillover effect when sentiment weakens.

Crypto markets have been under persistent pressure since early October, following a wave of forced liquidations of highly leveraged positions.