Bitcoin Declines 14% from Peak, Analysts Warn of Further Drops

Bitcoin has fallen to its lowest point in over a month, showing signs of weakness after its record-breaking surge earlier this year. In March, Bitcoin reached a peak of nearly $74,000 driven by optimism surrounding the potential approval of cryptocurrency exchange-traded funds (ETFs) in the United States. Since then, it has retraced approximately 14%. This recent decline aligns with expectations of interest rate volatility in the U.S., which has dampened demand for riskier assets.

The downward trend in Bitcoin continues. Alex Kuptsikevich, a senior market analyst at FxPro, noted that the cryptocurrency market has been impacted by stock market sell-offs, reflecting a decrease in global risk appetite.

Bitcoin briefly dropped 2.4% to $63,490, marking its lowest level since May 15. Over the past week, it has declined by about 3%. Other major cryptocurrencies, including Ether, XRP, Cardano, and Solana, have also experienced minor drops of around 1% or less.

Fiona Cincotta, a senior financial market analyst at City Index, commented, “The bull market of the past few quarters has lost momentum, and there is a risk of failure. While Bitcoin is considered a hedge against inflation due to its limited supply, it now faces pressure as global inflation cools down to normal levels.”

In the past few weeks, Bitcoin’s gradual decline accelerated on Friday, with prices falling over 3% in the last 24 hours to around $63,700. This translates to a 9% decline over the past month. Despite this downturn, contrarian bulls may find solace in indicators tracked by analysis firm Santiment, which suggest extremely negative sentiment toward Bitcoin over the past four weeks.

Sentiment: Negative