Key Points:
Bitcoin tumbled 2.7% on Tuesday, touching $65,300 as of 10:26 a.m. in Singapore. Other cryptocurrencies, like Ether, Solana, and even Dogecoin, also tumbled.
CoinShares International Ltd., in the update last week, $600 million in outflows from digital-asset products became the single largest weekly withdrawal since March. The trend has only overstated in times of heightened cautiousness among investors amid relentless pressure from inflation, which dented hopes of Federal Reserve interest-rate cuts any time soon. The reluctance to reduce rates poses a challenge for speculative investments like cryptocurrencies that thrive in low-interest-rate environments.
Read more: Spot Ethereum ETF vs. Spot Bitcoin ETF: Investments That Will Explode In The Future
On a quarter-to-date basis, traditional financial assets such as equities and fixed income outperform Bitcoin, reversing last quarter’s performance. Digital assets outperformed traditional markets for the first three months of this year.
Investors are treading more carefully against such market sentiment, and cryptocurrencies’ value is checked against more traditional and stable investment avenues. The many wild swings that characterize the cryptocurrency market persist despite increasing scrutiny by retail and institutional investors alike, against the backdrop of continued uncertainties in the global economy, including inflationary pressures and monetary policy adjustments.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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