Bitcoin
and the broader cryptocurrency market continue to suffer steep losses so far this month, even as global stocks have returned to record highs after overcoming concerns about the U.S. economy’s growth.
The largest digital currency has fallen about 9% in August, lagging a roughly 1% gain in the MSCI World Equity Index, along with a jump in gold prices to an all-time high. The Bloomberg World Bond Index has also gained about 2% in the same period.
Analysts have warned of the risks of disposing of bitcoin seized by the U.S. government, which is believed to hold about $12 billion in cryptocurrencies, as they see the move as one of the challenges facing digital assets. Blockchain data suggests that the U.S. government last week moved $600 million worth of seized bitcoin to a wallet on an exchange run by Coinbase Global, according to an analysis by Arkham Intelligence.
The potential U.S. government sales are “causing temporary downward pressure on prices,” said Khushboo Khullar, an investment partner at Lightning Ventures, which invests in bitcoin-related companies. “We expect this gap to end soon.”
Significant Sell-Off
