Sharp declines in the cryptocurrency market: Cryptocurrencies experienced a sharp and collective decline in the last few hours,
led by Bitcoin, due to a decrease in demand for exchange-traded funds (ETFs)
in the US market and lowered expectations for a more flexible monetary policy by the Federal Reserve.
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Decline in gold prices with yesterday’s market close
The dollar rises against a basket of currencies
Sharp declines in the cryptocurrency market
Decline in gold prices with yesterday’s market close
Gold prices fell on Tuesday after reaching record levels in yesterday’s trading,
due to the recovery of the dollar and US Treasury yields fueled by strong data.
This data raised doubts about the possibility of the US Federal Reserve cutting interest rates three times this year.
The spot gold price rose by 0.2% to $2253.94 an ounce,
but it is still below its all-time highs recorded on Monday at $2265.49.
The US gold futures rose by 0.8% to $2274.60 an ounce.
Gold reached new record levels; however, signs of excessively high prices began to appear,
leading to a slight decline.
Nonetheless, the recent declines in gold prices were minor as buyers awaited better purchasing opportunities.
The dollar rises against a basket of currencies:
The dollar stabilised near its highest levels in four and a half months against major currencies on Tuesday,
as risks related to the timing of the first interest rate cut by the US Federal Reserve this year decreased.
The dollar saw a notable rise against the euro
and approached its highest levels in six weeks against the British pound.
This came after US data on Monday showed an unexpected expansion
in the manufacturing sector for the first time since September 2022.
However, expectations of intervention by Japanese authorities undermined the dollar’s gains against the yen.
US Treasury yields for long-term bonds rose to their highest levels in two weeks on Monday night.
Expectations for US interest rates fell to a 61.3% chance of a rate cut in June,
compared to 70.1% almost a week ago.
Sharp declines in the cryptocurrency market
Cryptocurrencies experienced a sharp and collective decline in the last few hours,
led by Bitcoin, due to a decrease in demand for ETFs in the US market
and lowered expectations for a more flexible monetary policy by the Federal Reserve.
Bitcoin’s largest cryptocurrency by market value dropped by nearly 4.5%
over the past 24 hours, now at $66,428, with the lowest price reaching $64,000.
The strong growth witnessed by cryptocurrencies this year is losing momentum as investors scale
back bets on Federal Reserve interest rate cuts amid ongoing price pressures in the United States,
leading to higher Treasury yields and the dollar.
This poses a greater challenge to the trading sectors of digital assets in global markets.
Bitcoin’s value has dropped by about 10% since reaching its peak at $73,798 in mid-March.
Daily flows into US spot Bitcoin ETFs have also declined, affecting the largest digital assets.
On Monday, investors withdrew a net of $86 million from 10 funds,
which had attracted about $12 billion since their launch on January 11.
Sharp declines in the cryptocurrency market
