As investors withdrew their money from cryptocurrency ahead of the Federal Reserve’s announcement on interest rates later in the day, bitcoin saw a third day of declines on Wednesday, marking its worst monthly performance since late 2022.
The value of the most traded cryptocurrency in the world decreased by about 16% in April as a result of investors taking gains during a spectacular rise that saw the price reach record highs of over $70,000.
Bitcoin had a 4.7% decline to $57,055, the lowest level since late February. Meanwhile, ether saw a more moderate 3.6% decline to $2,857, the lowest level since February.
Currently, the price of bitcoin is 22% below its all-time high of $73,803 set in March, indicating a bear market.
The fact that billions of dollars have been pouring into recently launched exchange-traded funds since January, however, is largely responsible for its continued rise of 35% this year and its doubling from this time last year.
Interest rate-sensitive assets like cryptocurrencies, emerging market stocks and bonds, and even commodities are suffering as a result of the growing investor belief that the Fed may not lower rates at all this year. On the macro front, the Fed is not anticipated to alter interest rates at all. The response from investors has been appropriate.
Currently seeing their greatest weekly withdrawal since launch in January are the top ten US spot bitcoin exchange-traded funds (ETFs).
