A wave of selling hits cryptocurrencies with expectations of lower interest rates Over the past week, the value of Bitcoin has fallen by approximately 9 percent and is on track to record its largest weekly decline since September Bitcoin fell more than 5.7 percent on Tuesday, heading for its biggest one-day drop in two weeks, due to a sell-off that hit cryptocurrencies and other high-risk assets, such as stocks. The price of Bitcoin last fell by 4.2 percent to $64,550, after falling to its lowest level in two weeks at $63,555, while Ether fell by 4.4 percent to $3,355.
Bitcoin is still gaining 52 percent this year so far, as investors turned to US ETFs backed by spot bitcoin. The price of Bitcoin reached a record high level of about $74,000 on Thursday of last week, which led to profit-taking operations by some investors, in addition to the release of a series of American data that indicated that the US Federal Reserve may not reduce interest rates this year by as much. Which was previously thought.
During the past week, the value of Bitcoin decreased by approximately 9 percent, and is about to record its largest weekly decline since last September, while Ether lost 13 percent after an update to the Ethereum core network. Despite Bitcoin’s poor performance, the overall cryptocurrency market did not witness the same weakness. Smaller tokens, also known as altcoins, have achieved independent investment flows. For example, Solana Network’s SOL token rose 19 percent over the past week, while Avalanche Network’s AVAX token rose 17 percent, according to CoinGecko.
In a comment, analysts at the Bitfinex exchange platform said: “In light of Bitcoin’s recent record high and the subsequent correction, we expect a period of rebalancing in the market as investors seek to find a point of balance amid unprecedented inflows into spot Bitcoin ETFs.” Capital flows into the 10 largest Bitcoin ETFs (BTC ETFs) have declined over the past few days. According to data from the London Stock Exchange (LSEG), $178 billion flowed into these major funds on Monday, compared to more than $400 billion entered in several days last week.