Bitcoin sinks over 7% on ebbing Fed rate-cut bets and cooling ETF demand
Bitcoin dropped the most in almost two weeks, weighed down by cooling demand for dedicated US exchange-traded funds and ebbing bets on looser Federal Reserve monetary policy.
The digital asset fell as much as 7.4%, the biggest intraday decline since March 19, and traded around $65,400 at 10:09 am in New York. Tokens earlier favored by the meme crowd such as Pepe and dogwifhat also slumped, sending a gauge of smaller digital assets sharply lower. The crypto declines came as equities markets in Europe and the US also dropped.
This year’s steep crypto rally is losing steam as lingering US price pressures lead investors to curb wagers on Fed interest-rate cuts, bolstering Treasury yields and the dollar. That’s a more difficult backdrop for speculative corners of global markets such as the digital-asset sector.
The changed views about the Fed are having an impact “across crypto, where there has been a selloff as the week gets underway — no sector is unaffected, especially those where prices have outperformed Bitcoin over last six months, for example memes,” said Stefan von Haenisch, head of trading at OSL SG Pte.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus,
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