(MENAFN) Bitcoin witnessed a third consecutive day of decline on Wednesday, following its worst monthly performance since late 2022 in April. The cryptocurrency's value has been under pressure amidst anticipation surrounding the Federal Reserve's decision on interest rates and the release of crucial data from the US labor market.
April marked a particularly challenging month for Bitcoin, with its value plummeting by approximately 16 percent. This decline was attributed to profit-taking by investors, who sought to capitalize on the cryptocurrency's significant surge to unprecedented levels, surpassing $70,000.
In the latest trading sessions, Bitcoin experienced a further decline of about 3.8 percent, reaching $57,481, its lowest level since late February. Similarly, Ethereum, the second most traded cryptocurrency globally, also faced a downturn, losing approximately 2.6 percent and falling to $2,884, its lowest level since mid-April.
Market sentiment has been influenced by speculation surrounding the Federal Reserve's monetary policy decisions. While the US Central Bank is not expected to adjust interest rates imminently, investors are increasingly inclined to believe that there may be no rate cuts throughout the year. This sentiment has negatively impacted interest rate-sensitive assets, including cryptocurrencies, emerging market stocks, bonds, and commodities.
The prevailing uncertainty in the market underscores the challenges facing digital currencies like Bitcoin, as they navigate a landscape influenced by macroeconomic factors and regulatory developments. As investors await clarity on monetary policies and economic indicators, the future trajectory of cryptocurrencies remains uncertain, with volatility likely to persist in the near term.
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