Bitcoin hits lowest since February, crypto market in tailspin

In the lead-up to the Federal Reserve’s interest-rate decision today, Bitcoin and other cryptocurrencies experienced a significant downturn. Bitcoin, the world’s largest cryptocurrency, hovered around $57,000 during Wednesday’s European morning trading session, marking its lowest point since February’s end and registering its most substantial monthly decline since November 2022.

Bitcoin hits lowest since February, crypto market in tailspin

According to CoinDesk data, Bitcoin (BTC) observed a 7.5% drop in the past 24 hours, breaching the critical $60,000 support level late Tuesday. The broader crypto market, represented by the CoinDesk 20 Index (CD20), followed suit, experiencing an approximate 9% loss before slightly recovering from the dip.

The crypto market’s downturn reflects a prevailing risk-averse sentiment in broader financial markets, particularly in the United States, amidst concerns of stagflation. Lingering indications of sluggish economic growth coupled with persistent inflationary pressures have tempered expectations of a Federal Reserve interest-rate cut.

Ether (ETH), the second-largest cryptocurrency, faced an over 8% decline, slipping below the $3,000 mark. Meanwhile, dogecoin (DOGE) led the downturn among major altcoins, witnessing an 11% slide in its value. Other significant players like Solana (SOL) and Avalanche (AVAX) also experienced losses of about 7%.

April saw Bitcoin’s first monthly loss since August, with a 16% drop, marking its most substantial decline since November 2022, coinciding with the collapse of crypto exchange FTX. As market participants await the Federal Open Market Committee’s latest rate decision, uncertainty prevails in both traditional and digital financial arenas.