HONG KONG: Bitcoin slid to a one-month low as outflows from digital-asset investment products and the prospect of higher-for-longer US borrowing costs sapped the cryptocurrency market.
The largest digital asset at one point fell as much as 2.7% on Tuesday and was trading at about US$65,300 as of 10:26am in Singapore. Smaller tokens such as Ether, Solana and Dogecoin posted heavier losses.
Some US$600 million was pulled from digital-asset products last week, the most since March, data from CoinShares International Ltd show.
Stubborn inflation has led traders to scale back expectations for Federal Reserve interest-rate cuts this year, posing a challenge for speculative investments such as crypto.
Stocks and bonds have delivered better returns than Bitcoin this quarter, a turnaround from the three months through March, when digital assets outperformed traditional markets by a significant degree.