Cryptocurrencies experienced their second-largest weekly decline of 2024 due to waning global investor enthusiasm for Bitcoin exchange-traded funds (ETFs).
The top 100 cryptocurrencies slid 5 percent over the past week, the market’s worst decline since April, Bloomberg reported.
Bitcoin fell below $63,000 on Monday, marking its lowest point since May. The cryptocurrency market has been on a downward trend for six consecutive days, influenced by uncertainty in US markets over potential Federal Reserve interest rate cuts. This uncertainty has led to a significant decline in demand as investors pause purchases, seeking clarity on the Fed’s decision.
An expert said the current slump is marked by low volatility, soft volumes, and unbalanced order books when prices approach the edges of their range.
Ethereum (ETH) and Solana are experiencing significant declines in value, with ETH enduring its longest streak of weekly drops since 2023. Solana, previously favored by digital-asset hedge funds worldwide, is facing its most severe downward slide since 2022.
It’s worth noting that Bitcoin surged to its highest-ever level of $73,798 in March but has shown weaker performance relative to conventional assets like stocks, bonds, and gold this quarter.
At the time of filing, the flagship cryptocurrency was down 3.14 percent and trading at $62,375
