Bitcoin price dropped on Friday and is heading for a significant loss this week, due to concerns about the slower pace of interest rate cuts in the US and the possibility of the government selling a large amount of Bitcoin, which weakens sentiment towards cryptocurrency.

The cryptocurrency market is also largely following the downward trend of broader risk markets, as traders shift to safe assets like gold and USD amid increasing economic uncertainty.

The world's largest cryptocurrency is also under pressure from profit-taking after its value tripled in 2024. Other cryptocurrencies have also declined in line with Bitcoin.

Bitcoin fell 0.6% to $93,925.0 at 00:56 ET (05:56 GMT). The coin dropped to a low of $92,474.1.

Bitcoin has dropped about 4.4% this week, marking the worst performance since the end of September.

In addition to widespread risk-averse sentiment, Bitcoin is also under pressure from reports that the US Department of Justice has been approved by the court to sell approximately $6.5 billion worth of Bitcoin seized from the Silk Road black market.

While the DOJ's sale of Bitcoin adds selling pressure to the market, it also extinguishes hopes that President-elect Donald Trump would convert the government's seized Bitcoin into a strategic reserve.

Mr. Trump has committed to enacting cryptocurrency-friendly regulations and has even suggested the possibility of establishing a strategic Bitcoin reserve.

However, analysts express skepticism about how he would implement this reserve, as Congress is likely to not approve any additional fiscal spending for the government's Bitcoin purchases.