Monetary policy in the US continues to be tightened and the founder of Binance was convicted, negatively impacting the flow of risky investment capital.
According to Coin Market Cap, bitcoin price continuously adjusted sharply, at one point falling below the 69,000 USD/BTC mark.
At the end of the month, the world's largest digital currency fell about 15%, the worst decline since November 2022 when the FTX exchange collapsed, and was trading at its lowest level since late February.
The reason is partly due to the excitement surrounding spot ETFs in the US market with virtual assets decreasing. However, the price of the world's largest virtual currency is still expected to increase by more than 30% in 2024.
Bitcoin's plunge also caused 100,450 derivatives accounts to be liquidated with a total loss value of up to 365 million USD.
Spot ETF fever has sent bitcoin to a record high of nearly $74,000. However, the decline in expectations about the Fed's interest rate cuts has caused capital flows into investment products to decrease significantly.
The Fed decided to keep interest rates unchanged after the meeting. Since last year, US operating interest rates have always been in the range of 5.25-5.5%.
The macro backdrop is not favorable for highly liquid assets like cryptocurrencies. Tough operating policies have tightened liquidity since mid-April," Mr. Geoff Kendrick, head of digital asset research at Standard Chartered Bank, shared with CNBC.
Sharing the same view, Zach Pandl, head of research at digital assets firm Grayscale Investments, said higher real interest rates have supported the USD and put pressure on bitcoin over the past month.