Bitcoin fell to a six-month low on Friday as a wider sell-off in risk assets intensified, driven by diminishing expectations that the Federal Reserve will lower United States interest rates at its next policy meeting.

U.S. stock selling, however, eased somewhat in the afternoon ahead of the weekend, though investors remained cautious ahead of a series of economic data releases next week following the government’s reopening after a record 43-day shutdown.

“Bitcoin and crypto have generally enjoyed a positive correlation with good times in equities, so it has not become an asset of alternative value to hedge against fear in other sectors,” said Juan Perez, director of trading at Monex USA in Washington.

“⁠If there is no enthusiasm toward risk-‌taking, it seems like that also translates into hesitation with bitcoin and the like.”

Risky assets have come under pressure in recent days as expectations of a Fed rate cut next month have faded, with an increasing number of policymakers signaling they prefer to delay any easing.

In early afternoon trading, bitcoin, the world’s largest cryptocurrency — was down 2.3 per cent at $96,564 after briefly touching $95,885.33, its lowest level since May 7.

Ether, the second-largest cryptocurrency, was little changed at $3,175.22 after earlier sliding to a 10-day low.

Since reaching its peak on October 7, the total cryptocurrency market value has plunged by over $1 trillion, representing a 24 per cent drop.