Bitcoin Touches a One-Month Low in a Broad Crypto Market Selloff: Bitcoin has experienced a significant dip,
reaching its lowest point in a month amid a widespread selloff in the cryptocurrency market.
The market downturn is attributed to substantial outflows from digital asset
investment products and the prospect of sustained high US borrowing costs.
Content
Bitcoin’s Decline
Market Outflows and Economic Factors
Regulatory Concerns in South Korea
Bitcoin’s Decline
Bitcoin, the largest digital asset, saw a decline of up to 2.7% on Tuesday, reaching levels not seen since mid-May.
However, it recovered slightly, trading at $65,740 as of 1:20 p.m. in Singapore.
This drop was mirrored by other smaller tokens, including Ether, Solana, and Dogecoin, which also experienced significant losses.
Market Outflows and Economic Factors
Data from CoinShares International Ltd. indicated that approximately $600 million
was withdrawn from digital-asset products last week, marking the highest outflow since March.
Persistent inflation has caused traders to revise their expectations for Federal Reserve interest-rate cuts this year,
creating a challenging environment for speculative investments like cryptocurrencies.
In contrast, stocks and bonds have delivered better returns than Bitcoin this quarter,
reversing the trend from the previous three months when digital assets outperformed traditional markets significantly.
Expert Insights
“Crypto is becoming increasingly exposed to macro triggers,” commented Caroline Bowler,
CEO of BTC Markets Pty.
Despite the current market challenges, Bowler remains optimistic about the long-term prospects for cryptocurrencies.
New Listing Stumbles
The waning appetite for new coins was evident across the crypto market.
For instance, the ZK token, associated with a highly anticipated project on the Ethereum blockchain,
plummeted by a third following its Monday listing. This is part of a broader trend where several new launches have faced sharp selloffs.
Regulatory Concerns in South Korea
In South Korea, new regulations set to take effect next month may compel exchanges
to reduce the number of tokens available to investors.
Given that South Korea is a significant market for smaller digital assets,
this news has likely unsettled some traders, contributing to the broader market selloff.
Bitcoin Touches a One-Month Low in a Broad Crypto Market Selloff