Bitcoin faced a third consecutive day of decline on Wednesday, signaling ongoing market turbulence following its worst monthly performance in April since late 2022. The world’s most traded cryptocurrency saw its value plummet by nearly 16 percent in April, marking a stark contrast to its previous rally that propelled it to record highs above $70,000.
By 8:20 GMT, Bitcoin saw a 5.80 percent decline to $57,103.10 ahead of the Federal Reserve’s interest rate meeting later today and key U.S. labor market data. Meanwhile, Ethereum saw a 5.76 percent decline to $2,837.94, its weakest performance since mid-April.
Investor sentiment remained cautious ahead of the interest rate decision by the Federal Reserve, coupled with key U.S. labor market data. While markets expect the Fed to not make any immediate changes to interest rates, growing speculation suggests that the central bank may refrain from rate cuts throughout the year. This outlook has rattled markets, particularly impacting interest rate-sensitive assets such as cryptocurrencies, emerging market stocks and bonds, and commodities.
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As Bitcoin extends its losses amidst Fed interest rate speculations, the cryptocurrency market remains in a state of volatility. While investors await further clarity on monetary policy, the broader implications of the Fed’s decision on cryptocurrencies and other asset classes continue to shape market dynamics in the short term.
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