Cryptocurrencies experienced their second-worst weekly drop of 2024 as global interest in Bitcoin exchange-traded funds (ETFs) waned. The top 100 cryptocurrencies fell by 5 percent over the past week, marking the market’s worst decline since April, according to Bloomberg.
Bitcoin dropped below $63,000 on Monday, reaching its lowest level since May. The crypto market has been incurring losses for the sixth consecutive day, driven by uncertainty in US markets regarding potential Federal Reserve interest rate cuts. This confusion has led to a significant drop in demand as investors pause their purchases, awaiting clarity.
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An expert noted that the current slump is characterized by low volatility, soft volumes, and unbalanced order books when prices approach their range limits.
Ethereum (ETH) and Solana have experienced significant devaluations. ETH is undergoing its longest run of weekly declines since 2023, while Solana is facing its worst downward trend since 2022, despite once being highly favored by digital-asset hedge funds.
It’s noteworthy that Bitcoin reached an all-time high of $73,798 in March but has underperformed compared to traditional assets like stocks, bonds, and gold this quarter.
At the time of reporting, Bitcoin was down 3.14 percent, trading at $62,375.
