Bitcoin slides below $58,000, rattled by tougher Fed rate outlook

LONDON (Reuters) – Bitcoin extended its decline for a third day on Wednesday, posting its worst monthly performance since late 2022 in April ahead of the Federal Reserve’s later interest rate decision and U.S. labor market data.

The value of the world’s most traded cryptocurrency fell nearly 16% in April as investors profited from a torrid rally that sent the price to record highs above $70,000.

Bitcoin was last down 3.8% at $57,481, its lowest level since late February, while losses in Ethereum were more moderate, dropping 2.6% to $2,884, its lowest level since mid-April.

The Fed is not expected to make any changes to interest rates later, but the view is taking hold among investors that the central bank will not cut interest rates at all this year, dealing a blow to interest rate-sensitive assets such as cryptocurrencies and emerging markets. stocks, bonds and even commodities.

(Reporting by Amanda Cooper; Editing by Stefano Rebaudo)