The logos of Bitcoin, left, Ethereum, center, and Tether at a One Satoshi over-the-counter (OTC) cryptocurrency store in Hong Kong, China, on February 26, 2024. (Photo: Bloomberg)
NEW YORK - Bitcoin fell to a one-month low as outflows of digital asset investment products and the prospect of higher and prolonged US borrowing costs undermined the cryptocurrency market.
The once-largest digital asset fell as much as 2.7% on Tuesday and was trading at around $65,300 as of 10:26 a.m. in Singapore. Smaller tokens such as Ether, Solana, and Dogecoin recorded larger losses.
About $600 million was withdrawn from digital asset products last week, the most since March, data from CoinShares International Ltd shows.
Persistent inflation has led traders to lower expectations of interest rate cuts from the US Federal Reserve (Fed) this year, posing a challenge for speculative investments such as cryptocurrencies.
Stocks and bonds have delivered better returns than Bitcoin this quarter, a turnaround from the three months through March, when digital assets outperformed traditional markets to a significant degree.
