Bitcoin is displayed on the screen, showing the exchange rate between Bitcoin and the US dollar.
Fernando Gutierrez-Juarez | Photo Alliance | Getty Images
Bitcoin Stocks fell for a second straight day at the start of a new month and quarter as U.S. Treasury yields rose and the dollar strengthened.
The flagship cryptocurrency fell more than 6% to $65,150.00 on Tuesday, a two-day drop of about 7%, according to Coin Metrics. It was trading around $70,000 on Monday morning before data showed manufacturing grew for the first time since September 2022 and investor bets on a rate cut in June began to cool. Bitcoin is currently down about 11% from its all-time high set on March 14.
ether It then fell, falling 4.5% to close at $3,319.08.
at the same time, 10-Year U.S. Treasury Bond Yield The highest level in the year DollarThe price of Bitcoin, which has an inverse relationship with Bitcoin, reached its highest level in nearly five months.
Bitcoin (BTC) drops from April
“After such an explosive performance in the first quarter, Bitcoin doesn’t need much of an excuse to go through a period of correction,” said Joel Kruger, market strategist at LMAX Group. “That said, U.S. economic data has been stronger of late, while inflation remains Worrying. This has led to a repricing of Fed expectations, translating into broad dollar demand for more attractive dollar yield differentials.”
Big Bitcoin traders, or “whales,” moved more than 4,000 Bitcoin to the Bitfinex exchange late Monday night, potentially exacerbating Bitcoin’s moves. Data from CryptoQuant showed the exchange’s surge in reserves, which typically signals an increase in selling activity, coincided with a sudden drop in Bitcoin prices late Monday night.
Stocks tied to Bitcoin’s performance were dragged down.cryptocurrency exchange Coin library fell 4%, while the software provider micro strategyIt trades primarily as a proxy for the price of Bitcoin, which fell nearly 7%. The largest mining stocks, marathon numbers and Anti-riot platformdown 7% and 6% respectively. clean sparkOne of the best-performing miners this year is down 6%.
April could be a volatile month for cryptocurrencies and related stocks, especially mining stocks. Investors are looking forward to the second half of the Bitcoin halving – which will drastically cut rewards for Bitcoin miners and thus cut into their income. The incident could hurt miners’ performance, but historically Bitcoin prices have risen by 300% or more in the following months.
Bitcoin is still up 53% in 2024.
About The Author
