Updated May 1st, 2024 at 16:30 IST

Bitcoin Declines for Third Day Amid Fed Rate Decision Anticipation

In April, Bitcoin witnessed a significant drop in value, plunging by nearly 16 per cent.

Reported by: Business Desk
Bitcoin | Image:Unsplash
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Bitcoin declined: Bitcoin faced its third consecutive day of decline on Wednesday, adding to concerns following its lacklustre performance in April, marking its worst monthly showing since late 2022. As markets eagerly awaited the Federal Reserve's upcoming interest rate decision and closely monitored key U.S. labour market data, the cryptocurrency landscape remained turbulent.

In April, Bitcoin witnessed a significant drop in value, plunging by nearly 16 per cent. This downturn came as investors opted to capitalize on profits amassed during a blazing rally that had previously propelled Bitcoin's price to unprecedented heights, surpassing the $70,000 mark.

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Currently, Bitcoin is trading at $57,481, down 3.8 per cent from its recent highs, marking its lowest level since late February. Ether, another leading cryptocurrency, has also experienced a decline, albeit more modestly, slipping 2.6 per cent to $2,884, reaching its weakest point since mid-April.

Amidst this backdrop, market sentiment is tinged with caution regarding the Federal Reserve's stance on interest rates. While no immediate changes are expected, there is a growing consensus among investors that the central bank may abstain from any rate cuts for the remainder of the year. 

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Such an outlook has cast a shadow over interest rate-sensitive assets, including cryptocurrencies, emerging market stocks and bonds, and commodities, as market participants brace for potential shifts in monetary policy.

With Reuters Inputs

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Published May 1st, 2024 at 16:30 IST