There is a Bitcoin on a screen showing the Bitcoin exchange rate against the US Dollar.
Fernando Gutierrez Juarez | Image Alliance | Getty Images
Bitcoin It fell for the second day in a row at the beginning of the new month and quarter, amid rising Treasury yields and a stronger US dollar.
The major cryptocurrency fell more than 6% on Tuesday to $65,150.00, bringing its two-day loss to about 7%, according to Coin Metrics. On Monday morning, it was trading at around $70,000, before data emerged showing the manufacturing sector grew for the first time since September 2022 and investor bets on interest rate cuts in June began to subside. Bitcoin has now moved away from its all-time high, which it reached on March 14, by about 11%.
ether It fell with it, losing 6% to trade at $3,240.27.
at the same time, 10-year US Treasury bond yield It reached its highest level this year and dollarWhich has an inverse relationship with Bitcoin, reaching its highest level in approximately five months.
Bitcoin (BTC) is falling to start April
“Bitcoin doesn't need much of an excuse to go through a correction period after such an explosive performance in the first quarter,” said Joel Krueger, market strategist at LMAX Group. “However, US economic data has been stronger recently, while inflation remains a concern. This has led to a repricing of Fed expectations, translating into broad-based demand for the US dollar on more attractive US dollar yield spreads. “
Bitcoin's movement may have been exacerbated by a large bitcoin holder, or “whale,” who transferred more than 4,000 bitcoins to the Bitfinex exchange late Monday night. Data from CryptoQuant shows a spike in that exchange's reserves, which typically indicates an increase in selling activity, which coincides with a sudden drop in Bitcoin's price late Monday night.
Stocks linked to Bitcoin's performance were pulled lower. Crypto exchange Coinbase fell 4%, while the software provider Accurate strategy, which trades largely as a proxy for the price of bitcoin, lost nearly 7%. The largest mining stocks Digital Marathon And Riot padsHe lost 7% and 6%, respectively. Clean Sparkone of the best-performing mining companies this year, fell by 6%.
April could be a tumultuous month for cryptocurrencies and related stocks – especially mining stocks. Investors are looking forward to the Bitcoin halving – which will reduce the reward, and therefore revenue, for Bitcoin miners – in the second half of the month. This event can impact the performance of miners, but historically it has caused Bitcoin to rise by 300% or more in the following months.
Bitcoin is still up 53% for 2024.
