Bitcoin Extends Drop After One of Crypto’s Worst Weeks of 2024

(Bloomberg) — Losses are piling up in crypto after the digital asset market’s second-worst weekly decline in 2024; This is a reflection of cooling demand for Bitcoin exchange-traded funds and uncertainty around monetary policy.

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A benchmark of the 100 largest digital assets fell nearly 5% in the seven days through Sunday, according to data compiled by Bloomberg; This is the worst decline since April.

Market leader Bitcoin fell below $63,000 on Monday, falling to its lowest level in more than a month; This was a negative impact from a six-day streak of outflows from US ETFs for the token.

The cracks in the cryptocurrency come at a time when doubts are emerging about the Federal Reserve’s scope to quickly cut interest rates from two-decade highs. For some analysts, the decline in digital assets is a warning sign for broader risk appetite.

The current crypto market dynamic is “characterized by low volatility, soft volumes, and order books that become unbalanced as prices begin to move toward the edges of their range,” FalconX head of research David Lawant wrote in a note.

The declines in some corners are particularly striking: The weekly declines in Ether and Solana were the longest declines since last year and 2022, respectively.

This is true even as fund companies prepare to launch the first US ETFs that invest directly in Ether, the second-ranked crypto asset. Meanwhile, Solana has been a favorite among various digital asset hedge funds lately.

Bitcoin reached a record high of $73,798 in March, lagging behind traditional assets such as stocks, bonds and gold this quarter.

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