BitcoinIt fell for the second day in a row at the beginning of a new month and new quarter on the back of rising government bond yields and a stronger US dollar.
The flagship cryptocurrency fell more than 6% on Tuesday to $65,150.00, bringing the two-day loss to around 7%, according to Coin Metrics. On Monday morning, the stock was trading at around $70,000 before data showing manufacturing growth for the first time since September 2022 was released, as investors’ bets on a rate cut in June began to cool. Bitcoin is currently down about 11% from its all-time high on March 14th.
ether The stock fell accordingly, losing 6% to trade at $3,240.27.
on the other hand, 10 year US Treasury yield This year’s highest price was recorded, dollarhas had an inverse relationship with Bitcoin, reaching an almost five-month high.
Bitcoin (BTC) has been declining since April
“After an explosive first quarter performance, Bitcoin doesn’t need much of an excuse for a period of correction,” said Joel Krueger, market strategist at LMAX Group. “That said, recent U.S. economic data has been strong, even though inflation remains a concern. This has led to a reassessment of Fed expectations, with broader expectations for a more attractive USD yield differential. “This is leading to demand for the US dollar.”
Bitcoin’s move may have been further exacerbated by a large Bitcoin holder, or “whale,” who transferred more than 4,000 Bitcoins to the Bitfinex exchange late Monday night. CryptoQuant data shows a spike in exchange reserves coinciding with the sudden drop in Bitcoin prices late Monday night, which typically indicates increased sales activity.
Stocks related to Bitcoin’s performance fell.cryptocurrency exchange coinbase The software provider fell 4%. micro strategyThe company, which primarily trades Bitcoin prices on its behalf, fell nearly 7%. largest mining stock, marathon digitaland riot platformlost 7% and 6%, respectively. clean sparkThe company, one of the best-performing miners this year, fell 6%.
April could be a turbulent month for crypto stocks and related stocks, especially mining stocks. Investors are focused on the Bitcoin halving, which will reduce Bitcoin miners’ rewards, and therefore their profits, later in the month. While this event may have a negative impact on miner performance, historically Bitcoin has seen gains of over 300% in the months since.
Bitcoin is still up 53% in 2024.