Cryptocurrency market suffers major losses amid slowing ETF, policy uncertainty
Date
6/25/2024 9:04:38 AM
(MENAFN) The cryptocurrency market experienced substantial losses following its second-worst weekly decline in 2024, triggered by waning demand for Bitcoin exchange-traded funds (ETFs) and uncertainties surrounding monetary policies. An index monitoring the 100 largest digital assets plummeted by approximately 5% over the past seven days, marking the most significant downturn since April.
Bitcoin, the leading cryptocurrency, saw its price drop to below USD63,000, reaching its lowest point in over a month. The decline was exacerbated by a significant outflow of funds from US ETFs invested in Bitcoin over a six-day period. These developments underscored growing concerns among investors about the stability and attractiveness of digital assets.
The cryptocurrency market's downturn coincides with lingering doubts about the Federal Reserve's intentions regarding interest rate adjustments, which currently stand at their highest level in two decades. Uncertainty surrounding the pace and extent of the Fed's interest rate reduction has fueled apprehension among investors, contributing to the market's recent volatility.
As investors grapple with shifting market dynamics and policy uncertainties, the cryptocurrency landscape faces a period of heightened volatility and apprehension. The ongoing challenges highlight the intricate relationship between regulatory developments, investor sentiment, and market performance in the digital asset space.
MENAFN25062024000045015682ID1108370733
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.