- Bitcoin fell below $57,000 in April, marking its lowest point since February.
- The crypto market’s overall market capitalization also dipped nearly 7%.
- This downturn reflects market caution amid fears of stagflation in the U.S.
Bitcoin (BTC) slipped below $57,000 in the early hours of Wednesday to its lowest point since late February, marking its worst monthly performance since November 2022.
According to Coinmarketcap (CMC) data, BTC dipped by over 8% in the past intraday session, dropping below the $60,000 support level late Tuesday. As further confirmed by CMC, the overall crypto market capitalization dropped nearly 7% over the same period.
The crypto market has been cautious as fears of stagflation loom over the United States. These concerns arise from the possibility of a combination of high inflation and constrained economic growth, limiting conventional measures such as interest rate cuts to stimulate the economy.
Market observers noted that the current economic outlook in the U.S. is characterized by sluggish GDP growth and a decelerating economy. In addition, mounting inflationary pressures are straining the Federal Reserve.
Furthermore, rising inflation has driven living costs, influencing consumer spending patterns. This development has fueled concerns about economic stagnation, thereby amplifying market uncertainty.
As such, experts are examining the implications of U.S. Treasury policies on financial liquidity, which could significantly impact various risk assets totaling $1.4 trillion.
The Federal Open Market Committee is set to announce its latest rate decision later today. Hence, market participants are closely monitoring it for insights into the Federal Reserve’s stance on addressing economic challenges.
Moreover, the trajectory of the Bitcoin bull market is believed to be linked to the U.S. Treasury’s upcoming quarterly refunding announcement.
Bitcoin experienced a significant downturn in April, its first monthly loss since August. The 16% decline in April represents the most significant drop since November 2022, when the crypto exchange FTX imploded.
In addition to Bitcoin’s decline, Ether (ETH) dropped by 8%, with Dogecoin (DOGE) printing the biggest loss among major altcoins, recording an 11% slip. Likewise, Solana (SOL) and Avalanche (AVAX) have experienced losses of about 8%.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
