Bitcoin (BTC) hovered around $57,000 during the morning hours in Europe on Wednesday, marking its lowest point since February’s end, as the leading cryptocurrency endured its most challenging month since November 2022. Over the past 24 hours, BTC has experienced a decline of approximately 7.5%, breaching the critical $60,000 support level late Tuesday, according to data from CoinDesk. The broader crypto market, as indicated by the CoinDesk 20 Index (CD20), witnessed a nearly 9% dip before making a partial recovery from the downturn.
The crypto sphere has been grappling with risk aversion prevailing in global financial markets, fueled by concerns about slower economic growth and persistent inflation in the United States, which have dampened expectations of a Federal Reserve interest rate cut. The Federal Open Market Committee is scheduled to announce its latest interest rate decision later today.
Ether (ETH) saw a drop of over 8%, falling below the $3,000 mark, while dogecoin (DOGE) experienced the steepest decline among major altcoins with an 11% slump. Solana (SOL) and Avalanche (AVAX) both registered losses of around 7%.
Bitcoin’s downturn in April marked its first monthly loss since August, with a 16% decrease, representing its worst performance since November 2022, coinciding with the collapse of crypto exchange FTX.
