Bitcoin drops below $105,000 amid rising inflation fears.

The value of Bitcoin decreased by 1.12% on Friday, May 30, to reach $104,670, amidst economic pessimism due to inflation concerns and the monetary policy implications of the Federal Reserve.

This decline continued a two-day downward trend following the release of the Federal Reserve meeting minutes in May, which revealed policymakers' increasing concerns about ongoing inflationary pressures and signs of economic growth slowdown.

The digital currency had reached its all-time high at $111,000 on May 22 before gradually starting to decline.

In a related context, a report by the Financial Times raised concerns about a growing trend among some U.S. companies to adopt Bitcoin as an alternative to traditional cash reserves or dividend distributions, a move analysts see as carrying significant financial risks.

While traditional financial theories favor returning money to shareholders rather than hoarding it in company treasuries, some giant companies like Apple and Berkshire Hathaway have gained wide acceptance for their policies of hoarding cash liquidity.

In a notable development, some companies have even gone beyond holding U.S. dollars, with Trump Media allocating $2.5 billion for investment in Bitcoin, a move followed by companies like Tesla, GameStop, and Rumble, raising questions about the financial stability implications of this shift.

On the other hand, a Federal Open Market Committee meeting minutes highlighted officials' warnings of facing "tough trade-offs" amid continued inflation and unemployment increases, expressing particular concern about bond market fluctuations and the implications of any change in the dollar's status as a safe haven for the global economy.

These developments come at a time when global financial markets are experiencing instability, intensifying volatility across various asset classes, with a particular focus on the future of cryptocurrencies amidst ongoing shifts in monetary policies and corporate strategies.