LONDON : Bitcoin slid by almost 6 per cent on Wednesday, having posted its worst monthly performance in April since late 2022, as investors pulled money out of cryptocurrencies ahead of an interest rate decision by the Federal Reserve later.
The value of the world’s most traded cryptocurrency fell by nearly 16 per cent in April, as investors booked profits on a sizzling rally that has taken the price to record highs above $70,000.
Bitcoin fell by as much as 5.6 per cent to its lowest since late February. It was last down 4.8 per cent at $57,001, while losses in ether were more modest, down 3.6 per cent at $2,857, also at its weakest since February.
The price of bitcoin is now a full 22 per cent below March’s record of $73,803, technically putting it in a bear market. But it is still up 35 per cent so far this year and double where it was this time last year, thanks in large part to the billions of dollars flowing into newly minted exchange-traded funds since January.
“The recent downtrend can be attributed to increased profit-taking by investors who entered the market during the downturns of 2022 and 2023, as well as ETF investors who witnessed significant price appreciation on their shares after entering the market in the early weeks of 2024,” Fineqia research analyst Matteo Greco said.
Crypto-related stocks fell in U.S. premarket trading. Shares in crypto exchange Coinbase fell 4.6 per cent, while those in miners Riot and Marathon Digital dropped 4.2-4.3 per cent.
Moreover, staying informed about macroeconomic trends and regulatory developments is crucial for navigating the evolving landscape of digital currencies.
read more
image source
